Figure 6.2.2
-Refer to Figure 6.2.2 above. This figure shows the impact of technological improvements and conveys the idea that:
A) productivity increases with technology, but just as labor is subject to diminishing returns, so is technology.
B) technology causes an increase in the output per time period, but as the production functions show, the contributions of technology are also subject to diminishing marginal returns.
C) even though any given production process exhibits diminishing returns, labor productivity increases with technological improvements.
D) without an increase in the productivity of labor, the contributions of technology are insufficient to avoid diminishing returns as the production function shifts upward.

Question

Figure 6.2.2
-Refer to Figure 6.2.2 above. This figure shows the impact of technological improvements and conveys the idea that:
A) productivity increases with technology, but just as labor is subject to diminishing returns, so is technology. 
B) technology causes an increase in the output per time period, but as the production functions show, the contributions of technology are also subject to diminishing marginal returns. 
C) even though any given production process exhibits diminishing returns, labor productivity increases with technological improvements. 
D) without an increase in the productivity of labor, the contributions of technology are insufficient to avoid diminishing returns as the production function shifts upward.

Quizplus · Accepted Answer

Technological improvements lead to increased labor productivity, even if the production process itself experiences diminishing returns.

Figure 6.2.2 -Refer to Figure 6.2.2 Above. This Figure Shows the Impact