24. The price elasticity of the supply of teenage labor services is approximately 1.36. Suppose the minimum wage rises from $6.60 per hour to $7.00. Using the midpoint formula, calculate the approximately change in the will the quantity supplied of teenage labor. (Points : 1) 5.9 percent 13.6 percent 8 percent There is insufficient information to answer the question. 26. Suppose at the going wage rate of $20 per hour, firms can hire as many hours of janitorial services as it desires. If any firm tries to lower the wage rate to $19, it will not be able to hire any janitor. What does this indicate about the supply of janitorial services curve? (Points : 1) Supply is unit price elastic. Supply is perfectly price elastic. Supply is perfectly price inelastic. Supply is relatively price inelastic. 27. When demand is unit price elastic, a change in price causes total revenue to stay the same because (Points : 1) the percentage change in quantity demanded exactly offsets the percentage change in price. buyers are buying the same quantity. total revenue never changes with price changes. the change in profit is offset by the change in production cost. 28. If the marginal cost curve is below the average variable cost curve, then (Points : 1) average variable cost is increasing. average variable cost is decreasing. marginal cost must be decreasing. average variable cost could either be increasing or decreasing. 29. The difference between technology and technological change is that (Points : 1) technology refers to the processes used by a firm to transform inputs into output while technological change is a change in a firm's ability to produce a given level of output with a given quantity of inputs. technology is carried out by firms producing physical goods but technological change is an intellectual exercise into seeking ways to improve production. technology is product-centered, that is, developing new products with our limited resources while technological change is process-centered in that it focuses on developing new production techniques. technology involves the use of capital equipment while technological change requires the use of brain power. 31. What is the difference between "diminishing marginal returns" and "diseconomies of scale"? (Points : 1) Both concepts explain why marginal cost increases after some point but diminishing marginal returns applies only in the short run when there is at least one fixed factor, while diseconomies of scale applies in the long run when all factors are variable. Both concepts explain why average total cost increases after some point but diminishing marginal returns applies only in the short run when there is at least one fixed factor, while diseconomies of scale applies in the long run when all factors are variable. Diminishing marginal returns which applies only in the short run, when at least one factor is fixed, explains why marginal cost increases, while diseconomies of scale which applies in the long run, when all factors are variable, explains why average cost increases. Diminishing marginal returns which applies only in the short run, when at least one factor is fixed, explains why average variable cost increases, while diseconomies of scale which applies in the long run, when all factors are variable, explains why average total cost increases. 32. Which of the following is not a source of technological advancement for a producer? (Points : 1) better trained workers. more efficient physical capital. higher skill level of managers. outsourcing some aspect of production. 33. The president of Toyota's Georgetown plant was quoted as saying, "Demand for high volumes saps your energy. Over a period of time, it eroded our focus [and] thinned out the expertise and knowledge we painstakingly built up over the years." This quote suggests that (Points : 1) Toyota was experiencing an excess demand for its automobiles which it had difficulty keeping up with. as Toyota expanded its capacity, it experienced diseconomies of scale. Toyota was focused on "churning" out cars that it did not invest sufficiently in training its workers. high demand for Toyota's cars prevented the company from focusing on its strength: auto design.