A Change in Total Factor Productivity Will ________, Which ________

question 95

Multiple Choice

A change in total factor productivity will ________, which ________.

• A) change the demand for labor; shifts the labor demand curve
• B) decrease the demand for labor; shifts the labor demand curve out
• C) increase the supply of labor; shifts the labor demand curve
• D) change the demand for labor; shifts labor supply
• E) reduce the marginal product of labor; moves the wage down along the labor demand curve

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Definitions:

ATC

Average Total Cost, which is the total cost of production divided by the quantity of output produced, a key concept in microeconomic analysis.

Marginal Cost

The cost added by producing one additional unit of a product or service, crucial in decision-making on production and pricing.

Fixed Cost

Costs that remain constant regardless of the amount of goods produced or sold, including expenses like lease payments, employee wages, and insurance fees.

Variable

A characteristic, number, or quantity that can change or vary, taking on different values in a mathematical model, statistical experiment, or real-life situation.