A very- long- run consideration that could change a firm's production function is
A)increasing returns to scale of operation.
B)size of the plant.
C)diminishing returns.
D)rising cost of the factors of production.
E)an improvement in education that increases the quality of the economy's labour force.

Question

Quizplus · Accepted Answer

An improvement in education that increases the quality of the economy's labor force can have a very long-run impact on a firm's production function. This is because a better-educated labor force can lead to technological advances and increased productivity, which can result in higher returns to scale and lower production costs. Ultimately, these changes can affect a firm's production function in a significant way over the long term.

A Very- Long- Run Consideration That Could Change a Firm's