Technical progress will
A)shift a firm's production function and its related cost curves.
B)not affect the production function,but may shift cost curves.
C)shift a firm's production function and alter its marginal revenue curve.
D)shift a firm's production function and cause more capital (and less labor) to be hired.

Question

Quizplus · Accepted Answer

Technical progress refers to improvements in a firm's technology, which can shift the firm's production function, essentially altering how inputs (such as labor and capital) are combined to produce outputs. As a result, the related cost curves will shift as well, since the optimal combination of inputs (and therefore the associated costs) will also change.

Technical Progress Will