Process innovation causes an upward shift in a firm's total product curve and
A) a decrease in its average product.
B) a downward shift in its average total cost curve.
C) an upward shift in its average total cost curve.
D) an upward shift in its marginal revenue curve.

Question

Quizplus · Accepted Answer

Process innovation typically leads to more efficient production, reducing costs per unit, which shifts the average total cost curve downward.

Process Innovation Causes an Upward Shift in a Firm's Total