What Is The Change In Output That Results From Having One More Worker? The change in output from adding one more worker is the marginal product of labor. At the beginning, adding each worker will result in increasing marginal returns. Workers will be able to specialize and gain skills. At some point, adding each worker
What Is The Relationship Between Average Total Cost And Economies Of Scale? Economies of scale refers to a situation where as the level of output increases, the average cost decreases. Constant returns to scale refers to a situation where average cost does not change as output increases. Diseconomies of scale refers to a situation where
What Is The Importance Of Production Function? One important purpose of the production function is to address allocative efficiency in the use of factor inputs in production and the resulting distribution of income to those factors, while abstracting away from the technological problems of achieving technical efficiency, as an engineer or professional manager might …
What Innovations Did Ford Use To Increase Production And Reduce Costs Of Automobile Production? On December 1, 1913, Henry Ford installs the first moving assembly line for the mass production of an entire automobile. His innovation reduced the time it took to build a car from more than 12 hours to one hour and 33
How Do You Write A Production Cost Report? 1: Summarize the flow of physical units. 2: Compute output in terms of equivalent units. 3: Compute the cost per equivalent unit. 4: Assign costs to units completed and to units in ending WIP inventory. How do you prepare a production cost report? Determine the units to
Who Made Changes To Assembly Lines In Factories To Produce Automobiles More Cheaply? Pushing for even greater productivity, Ford introduced the moving assembly line five years later. His innovation allowed more cars to be made even more cheaply — and much faster. The moving assembly line cut production costs dramatically, raising workers’ wages, and giving
Why Do Producers Use The Economy Of Scale Theory? Economies of scale are cost advantages reaped by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable. How does
How Can Costco Sell Hot Dogs So Cheap? Having a bright and spiffy new factory helped limit production costs, which ultimately meant that Costco could continue selling its infamous combo meal for the same low price. When the demand for Kirkland Signature sausages increased even more, the company opened up yet another factory in Chicago
What Effect Does A Rise In The Cost Of Machinery Or Raw Materials Have On The Supply Curve? What effect does a rise in the cost of machinery or raw materials have on the supply curve? What effect does a rise in the cost of machinery or raw materials have on the cost of a
How Much Does It Cost To Make A Jersey? Apparel Cost to Make Total Profit Baseball Hats $2.40 $375.00 Baseball Jersey$11.00$300.00 T Shirts $4.00 $360.00 – – – How much does it cost for the NBA to make jerseys? The starting point for screen-printed basketball jerseys are “blank jerseys”, which cost between $13-$40 per jersey