22 analyze the relationship between productivity and

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2.2. Analyze the relationship between productivity and the cost of production. (Chapter 11,17)
Teacher Response:xxxxx, there is a precise relationship that can be directly identified as it is manifest betweenchanges in productivity and changes in the average variable cost of production. What is thisrelationship, and what does this underlying relationship imply about how productivity influencesthe cost of production?
productivity is high the cost of production is low. So, when you say productivity falls you arebasically saying that costs rises (Colander, 2013).Colander, D. (2013). Economics (9thed). New York, NY: McGraw HillTeacher Response:"So, when you say productivity falls you are basically saying that costs rises."In other words, there is an inverse relationship between changes in productivity and changes inthe cost of production.2.3. Analyze the effect of changes in the supply of and demand for factors of production onthe price of inputs. (Chapter 12).According to the text the connection between cost and supply is the revenue received for a goodmust be greater than the planned cost of producing it (Colander, 2013). Factors of production areinputs used to produce a product. The cost of production is impacted by a change in the cost ofan input which will shift the supply curve.If the cost of production is low the company’s profits

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Term
Fall
Professor
BOWMAN

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