Asked by Jasmine Jackson on Jul 27, 2024
Verified
Buford Bus Manufacturing installs a new assembly line.As a result,the output per worker increases.The marginal cost of output at Buford:
A) will increase (the MC curve will shift up) .
B) will decrease (the MC curve will shift down) .
C) will be unchanged.
D) is at its maximum.
Marginal Cost
The cost of producing one extra unit of a product or service.
Assembly Line
A manufacturing process in which parts are added to a product in a sequential manner to create a finished product more efficiently.
- Familiarize oneself with the theory of diminishing marginal returns and its influence on the production mechanism.
- Interpret the significance of rising and falling marginal returns for marginal cost.
Verified Answer
SA
Stang AuerkarnJul 31, 2024
Final Answer :
B
Explanation :
The marginal cost of output decreases when output per worker increases, as it means each additional unit of output requires less input cost, shifting the MC curve down.
Learning Objectives
- Familiarize oneself with the theory of diminishing marginal returns and its influence on the production mechanism.
- Interpret the significance of rising and falling marginal returns for marginal cost.
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