Macroeconomics
Macroeconomics
21st Edition
ISBN: 9781259915673
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 8, Problem 6RQ
To determine

Change in cost of production as a result of increasing output.

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The graph below represents per-worker production functions for the same country. Answer the following questions using this graph.   Which 1 concept explains that the area between B and C has a flatter slope than the area between A and B? Answer:                                                                                                                                  Law of Diminishing Marginal Returns                                                                                                                                      What has to happen for a country to move from point E to B to D? Answer:                                                                                                                                                                                                                                                     The movement through which 3 points (out of 5 given) would indicate the largest increase in productivity? Answer:
Why does adding capital to a production function make the economy more productive? What are diminishing returns  to capital? How does technology affect productivity and growth?
What is meant by technological advance, as broadly defined? How does technological advance enter into the definition of the very long run? Which of the following are examples of technological advance, and which are not: an improved production process; entry of a firm into a profitable purely competitive industry; the imitation of a new production process by another firm; an increase in a firm’s advertising expenditures?
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