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When output increases the unit labor cost falls and the unit material cost falls why?
Wiki User
∙ 11y ago
because the fixed cost is absorbed into the number of units produced.
Wiki User
∙ 11y ago
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How does technology affect production possibilities?
Technology increases production per unit of input (either labor or capital). Any increase in technology necessarily increases output per unit of input.
When calculating total cost do you add in variable manufacturing overhead fixed manufacturing overhead or both?
Following is the formula for total costtotal cost = fixed overheads + variable overheads + direct labor + direct material
What are The Benefits And Penalties of Corporate Right-Sizing?
The benefits of right-sizing are efficiency and cost reductions by streamlining equipment, services and labor. The downsides are from increases in unemployment, reduced office diversity, and hard to quantify losses from human experience of senior staff that were let go.
3 Why do so many foreign companies build facilities in the US?
Many reasons: Labor Availability Political considerations Public relations Raw Material Availability Legal Protections Reduction in shipping cost/time Political Stability
What qualifies to be considered in the labor force?
The labor force is consider as the number of people working. The labor force includes people who are working and those unemployed.
What happens to the equilibrium wage and quantity of labor if output rises?
The equilibrium wage falls and the equilibrium quantity of labor rises
How does technology affect production possibilities?
Technology increases production per unit of input (either labor or capital). Any increase in technology necessarily increases output per unit of input.
Why does the law of diminishing returns require the Production Possibility Frontier to be curved rather than a straight line?
law of diminishing returns implies that as amount of a variable factor say,labor,changes and others remain unchanged in short run,initially the output increases at an increasing rate,then increases at a decreasing rate and finally reaches maximum and falls. this shows that output is not changing linearly hence production possibility frontier cannot be a straight line.
How does technology affect production?
Technology increases production per unit of input (either labor or capital). Any increase in technology necessarily increases output per unit of input.
Can labor productivity decline as total output is rising?
NO. The labor productivity will rise together with total output. Vice versa
The marginal product of labor can be defined as?
change in output/change in labor.
What is the definition of marginal output of labor?
The change in output that results from employing an added unit of labor (hiring 1 extra person).
What is direct material and direct labor?
Direct material is material that is contained in the final product. Direct labor is labor that ultimately forms the final product.
What Best explains the effect of immigration in the labor market?
buy one get one free
What are the effects of migration on the labor force?
Immigration increases the supply of labor
What increase as output increases?
It will depend on the type of output. In manufacturing, the cost of raw materials will go up as more items are produced. That is a linear change. The cost of overhead (Labor, utilities, etc.) will also go up, but tends to be at a lessor rate, increasing profit margin.
Why does Division of labor increases productivity?
specialization
