Suppose a worker at a computer company rearranges existing machines and labor and increases production in the process. Using the production function, with output on the vertical axis and labor on the horizontal axis, this would be described as

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Quizplus · Accepted Answer

When a worker rearranges existing machines and labor to increase production, this is an example of technological progress or an improvement in productivity. This results in an upward shift of the production function curve, indicating that with the same level of labor input, more output can be produced. Therefore, the correct answer is E, an upward shift of the curve.

Suppose a Worker at a Computer Company Rearranges Existing Machines