A 50 percent productivity increase in the production of commodity Y:

Question

Quizplus · Accepted Answer

A 50 percent productivity increase in the production of commodity Y can lead to various outcomes depending on the context. It can increase the output of Y by 50 percent (A), not necessarily affect the output of another commodity X (B), and can shift the production frontier in the Y direction only, indicating an improvement in the efficiency of producing Y (C). Thus, any of these scenarios could be correct depending on specific circumstances.

A 50 Percent Productivity Increase in the Production of Commodity