Q1.
a.
This training will improve the employees’ work efficiency and accuracy. In order to increase productivity, each worker mush is able to produce more output. This is referred to as labor productivity growth. The only way for this to occur is through an in increase in the capital utilized in the production process. This increase can be in the form of either human capital. For example, Susan can cook 5 hamburgers in an hour. One day, she decides to go to the Hamburger Cooking School to learn how to cook hamburgers faster. When she returns to work, she is able to cook 20 hamburgers per hour by utilizing the new tricks she learned. It is clear that the only way to achieve of capital, available to workers and in the long run, the only way for overall productivity to increase is though increases in the capital used in production.
b.
Because of technological use, wages increase slowly, so for business should increase their employees’ productivity. Productivity is the combination of intelligent planning and focused efforts. For example, seek help/delegate task accordingly, set ambitious, yet realistic goals for increasing labor productivity.
Q2.
a. Excel paper
b. Excel paper
c. At output level approximate 7 it does reach its “capacity”.
d. Property taxes are fixed costs, so this would decrease AFC, which in turn decreases ATC. MC &AVC no change. AFC and ATC shift down.

Q3.
a. Account profits = Revenues- Explicit cost = 110000-25000-20000-2000-2000-1000=60000, it is positive.
b. Because it is Risk-free and risk premium are 3% in market. So the opportunity cost is 400000*3%+400000*3%=24000
c. Minimum amount of