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
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 18PAE
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning