Technological changes that increase productivity shift the

Question

Quizplus · Accepted Answer

Technological changes that increase productivity would decrease average total cost curve because with increased productivity, fewer inputs are required to produce a given output, reducing the average cost of each unit produced. Therefore, the correct answer is B. The production function shows how inputs are transformed into output, therefore, it would not shift downward. The marginal cost curve is affected by changes in variable costs and not productivity. It would also not shift upward in this case.

Technological Changes That Increase Productivity Shift the