Microeconomics,, 16th Canadian Edition

2 Economists shift back and forth between speaking in physical terms (“increasing returns”) and cost terms (“decreasing costs”). ...

8.2 The Very Long Run: Changes in Technology In the long run, profit-maximizing firms faced with given technologies choose the c ...

measure of output produced per unit of input used. Two widely used measures of productivity are output per worker and output per ...

The Significance of Productivity Growth Long ago, economics was known as the “dismal science” because some of its predictions we ...

Technological Change Our great-grandparents would have regarded today’s standard of living in most industrialized countries as u ...

Many changes in technology are based on scientific discoveries made in such non-profit organizations as universities and governm ...

New Techniques Throughout the nineteenth and twentieth centuries, changes in the techniques available for producing existing pro ...

aluminum substitutes for steel in a process of change that makes a statistical category such as “primary metals” seem unsatisfac ...

New Products New goods and services are constantly being invented and marketed; this is called product innovation. DVDs, smartph ...

Firms’ Choices in the Very Long Run Firms respond to market signals that indicate changes in the economic environment. For examp ...

activities to Mexico or India, where labour costs are relatively low and hence labour-intensive production techniques remain qui ...

Summary ...

8.1 The Long Run: No Fixed Factors LO 1, 2, 3 There are no fixed factors in the long run. Profit-maximizing firms choose from th ...

8.2 The Very Long Run: Changes in Technology LO 4 Over the very long run, the most important influence on costs of production an ...

Key Concepts The implication of cost minimization The interpretation of The principle of substitution Increasing, constant, and ...

Study Exercises MyLab Economics Make the grade with MyLab Economics™: All Study Exercises can be found on MyLab Economics™. You ...

Fill-in-the-Blank 1. Fill in the blanks to make the following statements correct. a. In the long run, if a firm is maximizing it ...

increases, average costs are. d. The LRAC curve represents the for each level of output. e. Each short-run average total cost cu ...

Review 4. Explain why a profit-maximizing firm must also minimize costs. 5. Use the principle of substitution to predict the eff ...

a. If the firm is producing light bulbs with Plant #1, what are the firm’s average costs? b. At does the firm display decreasing ...