The World View article titled "United States Gains Cost Advantage" says productivity advances have contributed to U.S.competitiveness in world markets.When improvements in productivity reduce costs,the production function shifts

Question

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When improvements in productivity reduce costs, the production function shifts upward, meaning that more output can be produced with the same amount of inputs. This leads to a decrease in the cost of production, shifting the cost curves downward. Therefore, the correct answer is B, upward shift in the production function and downward shift in the cost curves.

The World View Article Titled "United States Gains Cost Advantage