Chapter+9

=Chapter 9: Production and Productivity=

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=Extra Credit (Answer each question in 3-4 COMPLETE sentences to be considered for full credit):=
 * 1) Today, US workers produce in eight hours what it took workers in 1950 16 hours to produce. List three reasons for advances in productivity since 1950.
 * 2) Despite the tremendous gains in productivity in the US in recent decades, the rate of increase declined in the 1970s and 1980s. Discuss how the events below could have affected productivity.
 * 3) High energy costs shifted funds from investment in research and development in the 1970s and 1980s.
 * 4) An increase in government regulations to protect the environment and the health and safety of employees.
 * 5) What is "profit maximization"? Why should a firm try to maximize its profits rather than maximizing its production?
 * 6) Define "marginal revenue" and "marginal costs."
 * 7) Explain why profits are maximized at the point where marginal revenue equals marginal cost.