Which of the following would shift the production function upward?

Question

Quizplus · Accepted Answer

An increase in the availability of a natural resource would shift the production function upward by allowing for more efficient production and potentially increasing the productivity of the existing factors of production. An increase in the price of oil (A) would likely shift the production function downward, as it would increase the cost of production and decrease the marginal product of labor and capital. A decrease in the supply of labor (C) would also shift the production function downward, as there would be fewer workers available to use the existing factors of production. An increase in the nominal wage rate (D) could potentially shift the production function upward if it leads to an increase in worker productivity, but it would likely depend on the specific circumstances.

Which of the Following Would Shift the Production Function Upward