Assume There Is an Improvement in Technology That Increases the Marginal

question 45

Multiple Choice

Assume there is an improvement in technology that increases the marginal product of each unit of labor.This would have the effect of:

• A)reducing the average total cost, average variable cost, and marginal cost of production.
• B)increasing the average total cost, average variable cost, and marginal cost of production.
• C)reducing the average variable cost and marginal cost of production, but average total cost would be unchanged.
• D)reducing the average total cost and average variable cost of production, but marginal cost would be unchanged.

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Definitions:

Regression Parameters

The coefficients in a regression equation that represent the relationship between the independent variables and the dependent variable.

Monthly Observations

Regularly recorded data points collected each month to analyze changes or trends over time.

Debt/Asset Ratios

A financial ratio that compares a company's total debt to its total assets, indicating the company's leverage.

Market Capitalization

The total market value of a company's outstanding shares, calculated by multiplying the current stock price by the total number of outstanding shares.