Quiz 2 Ans

Quiz 2 Ans - rigid to adjust the total production cost :...

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Quiz 2 Ans 1.b 2.d 3.d 4.c 5.d 6.b 7.c 8.a 9.c 10.a 1998 04 (a) When a variable factor is successively added to the fixed factor(s), (holding technology constant) (2) the marginal product will eventually diminish. (2) (b) No, because all factors are variable / long-run production (2) 1999 03 (Company A is using) time rate and (Company B is using) piece rate. (1) + (1) Time rate : to avoid the disadvantage of using piece rate under which workers may forego quality for quantity/to maintain a steady supply of workers within a time period /no need to measure the output for determining the wage payment /any other relevant point (2) (Mark the FIRST POINT only.) Piece rate : to improve the incentive to produce more or to increase productivity of workers / to save the monitoring cost of workers (e.g. quality control) / less
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Unformatted text preview: rigid to adjust the total production cost : extra workers can be employed or dismissed according to the business volume/any other relevant point (2) (Mark the FIRST POINT only) 2003 10 (a) Division of labour (1)- choosing the most suitable persons for the job- practice makes perfect / learning by doing- saving time from training- saving time from moving around tasks- stimulus to mechanization 2005 03 (a) Public limited company. (1) Advantages :- wider source of capital- limited liability- legal entity- shares freely transferable- continuity of business Disadvantages :- financial accounts disclosed to the public- higher profits tax rate- higher risk of being taken over- complicated set-up procedure...
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This note was uploaded on 11/03/2011 for the course ECON 101 taught by Professor Buddin during the Spring '08 term at UCLA.

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Quiz 2 Ans - rigid to adjust the total production cost :...

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