In a production function that is graphed with output on the y- axis and labor on the x- axis, an increase in the labor stock is illustrated as:

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An increase in the labor stock means that more labor is being used to produce goods and services. This would result in a movement upwards along the production function, as more output is being produced for any given level of labor input. An upward shift in the production function would occur if there was a technological breakthrough or improvement in the efficiency of labor, resulting in a higher level of production for any given level of labor input.

In a Production Function That Is Graphed with Output on the Y-