ECON 1116 Chapter Notes - Chapter 11: Cost Curve, Industrial Revolution, Marginal Cost

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pucealligator647

24 Mar 2017

School

Northeastern University

Department

Economics

Course

ECON 1116

Professor

Michael Stone

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Document Summary

Lecture 7- chapter 11- technology, production and costs. Implicit cost- a nonmonetary opportunity cost (ex: forgone salary or economic. 3 key facts: marginal cost (mc), average total cost (atc) and average variable cost (avc) curves are all u shaped, and the marginal cost curve intersects both the avc and atc at their minimum points. If mc is below atc or avc, then they decrease. If mc is above atc or avc, then they increase. If mc= atc or avc, then they are at their minimum points: as output increases afc gets smaller this is because q (quantity) is increasing and. Fixed costs are remaining constant (aka- (cid:862) preadi(cid:374)g o(cid:448)erhead(cid:863)(cid:895: as output increases the difference between atc and avc decreases because the difference between atc/avc is afc (which decreases as output increase, as just mentioned) In the long run all costs are variable- there are no fixed costs in the long run tc=vc.

Related Questions

The difference between technology and technological change is that:

a. technology refers to the processes used by a firm to transform inputs into output while technological change is a change in a firm's ability to produce a given level of output with a given quantity of inputs.

b. technology is carried out by firms producing physical goods but technological change is an intellectual exercise in seeking ways to improve production.

c. technology is product-centered, that is, developing new products with our limited resources while technological change is process-centered in that it focuses on developing new production techniques.

d. technology involves the use of capital equipment while technological change requires the use of brainpower.

coralbeetle694

The difference between technology and technological change is that:

(i) technology is carried out by firms producing physical goods but technological change is an intellectual exercise in seeking ways to improve production.

(ii) technology is product-centered, that is, developing new products with our limited resources while technological change is process-centered in that it focuses on developing new production techniques.

(iii) technology involves the use of capital equipment while technological change requires the use of brainpower.

(iv) technology refers to the processes used by a firm to transform inputs into output while technological change is a change in a firm's ability to produce a given level of output with a given quantity of inputs.

plumelk226

The difference between technology and technological change is that:

1. technology refers to the processes used by a firm to transform inputs into output while technological change is a change in a firm's ability to produce a given level of output with a given quantity of inputs.

2. technology is carried out by firms producing physical goods but technological change is an intellectual exercise into seeking ways to improve production.

3. technology is product-centered, that is, developing new products with our limited resources while technological change is process-centered in that it focuses on developing new production techniques.

4. technology involves the use of capital equipment while technological change requires the use of brain power.

orangewhale173

ECON 1116 Chapter Notes - Chapter 11: Cost Curve, Industrial Revolution, Marginal Cost

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