19. A firm hires a new engineer. The engineer enables the firm to produce more output withthe same level of input. In economics, this is an example of:a) Economies of scope.c) Rental rate of capital.b) Diminishing marginal product of labour.d) Technological improvement.

Economies of scope: When an economy or a firm achieves efficiency through variety and not from…

Answered: 19. A firm hires a new engineer. The…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 1E

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Similar questions

What are the factor payments for land, labor, and capital?
What is a production function?
What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.
A small company that shovels sidewalks and driveways has 100 homes signed up for its services this winter. It can use various combinations of capital and labor: intensive labor with hand shovels, less labor with snow blowers, and still less labor with a pickup truck that has a snowplow on front. To summarize, the method Choices are: Method 1: 50 units of labor, 10 units of capital Method 2: 20 units of labor, 40 units of capital Method 3: 10 units of labor, 70 units of capital If hiring labor for the winter costs $100/unit and a unit of capital costs 400, what is the best production method? What method should the company use if the cost of labor rises to $20/unit?
What is a long-run average cost curve?
What is the difference between a fixed input and a variable input?
1. If diminishing marginal returns will set in after the very first unit of labour is employed? What do the average product, and marginal product curves look like in this case?
Number of Plants (K) Number of Workers (L) Total Production (Y) Marginal Product of Labour Average Product of Labour 1 1 200 1 2 83 1 3 64 1 4 54 1 5 47 1 6 0 Calculate and fill in the total Product column Calculate and fill in the Average Product Column With fixed capital, the firm can increase its marginal Product (MP) by increasing its workers infinitely. Do you agree or disagree with the statement and why? When does diminishing marginal return occur in the above table
3. We often work with production technologies that give rise to initially increasing marginal product of labor that eventually decreases. Are the following statements then True or False? Explain.The marginal product of labor is positive so long as the slope of the production frontier is positive.
Figure 11-13 Capital (units) 24 20 16 8 8 Select one: 10 Refer to Figure 11-13. The lines shown in the diagram are isocost lines. Which of the following shows an increase in the firm's total cost while the price of labor and capital remain unchanged? a. the movement from CE to BF b. the movement from CE to AF c. the movement from BD to CE d. the movement from BD to AF Labor (units)
3. We often work with production technologies that give rise to initially increasing marginal product of labor that eventually decreases. Are the following statements then True or False? Explain.The marginal product of labor becomes negative when the slope of the production frontier begins to get shallower as we move toward more labor input.

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19. A firm hires a new engineer. The engineer enables the firm to produce more output with the same level of input. In economics, this is an example of: a) Economies of scope. c) Rental rate of capital. b) Diminishing marginal product of labour. d) Technological improvement.