How does learning by doing affect average total costs? Short-run average total costs will rise because employees will continually fail, causing training costs (variable costs) to increase for the firm. Short-run average total costs will rise because firms will hire employees that have failed in previous jobs, causing decreased productivity. Short-run average total costs will fall because employees learn which production processes work and become more productive given the available inputs. Short-run average total costs will remain unchanged because any gain in employee productivity will be exactly canceled out by increased fixed costs. 0000

How does learning by doing affect average total costs? Short-run average total costs will rise because employees will continually fail, causing training costs (variable costs) to increase for the firm. Short-run average total costs will rise because firms will hire employees that have failed in previous jobs, causing decreased productivity. Short-run average total costs will fall because employees learn which production processes work and become more productive given the available inputs. Short-run average total costs will remain unchanged because any gain in employee productivity will be exactly canceled out by increased fixed costs. 0000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

How does learning by doing affect average total costs?
Short-run average total costs will rise because employees will continually fail, causing training costs (variable costs) to increase for the firm.
Short-run average total costs will rise because firms will hire employees that have failed in previous jobs, causing decreased productivity.
Short-run average total costs will fall because employees learn which production processes work and become more productive given the available inputs.
Short-run average total costs will remain unchanged because any gain in employee productivity will be exactly canceled out by increased fixed costs.
0000

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