Graphically, what happens to the production function if a firm uses automation to raise the amount of output per worker? Explain
What will be an ideal response?
The production function is the relationship between inputs and maximum physical output. If automation raises the productivity of workers, then the production function will rotate upward so that higher output corresponds to a given level of labor input.
You might also like to view...
Laura is a manager for HP. When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares
A) the total revenue from sales of printers to the total cost of producing all the printers. B) the extra revenue from selling a few additional printers to the extra costs of producing the printers. C) the extra revenue from selling a few additional printers to the average cost of producing the additional printers. D) HP's printers to printers from competing companies, such as Lexmark.
In the short run, a restrictive fiscal policy will cause aggregate demand, output, and the price level to change in which of the following ways?
A) Decrease/Decrease/Decrease B) Decrease/Increase/Increase C) Increase/Decrease/Decrease D) Increase/Decrease/Increase E) No change/No change/No change