A technological advance will shift (1)TP,AP,and MP curves up.
(2)TP,AP,and MP down.
(3)TC,ATC,and MC curves up.
(4)TC,ATC,and MC curves down.
A)(1)and (3)
B)(1)and (4)
C)(2)and (3)
D)(2)and (4)
E)(1)only

Question

Quizplus · Accepted Answer

A technological advance increases productivity and efficiency, leading to a decrease in costs. This shift will cause the total cost (TC), average total cost (ATC), and marginal cost (MC) curves to shift down. At the same time, the total product (TP), average product (AP), and marginal product (MP) curves will shift up as the level of output produced increases with the technological advance. Therefore, option (1)and (3) and option (2)and (3) are incorrect. Option (2)only is also incorrect as it suggests that costs will increase with a technological advance, which is not the case.

A Technological Advance Will Shift (1)TP,AP,and MP Curves Up