If a firm improves its production method, this change will shift the firm's
A) total product curve downward.
B) average cost curve downward.
C) average cost curve upward.
D) marginal cost curve upward.

Question

Quizplus · Accepted Answer

Improving the production method will result in a more efficient use of resources, which will lower the per-unit cost of production. This shift will result in the average cost curve shifting downward. The total product curve is not affected by changes in production methods, as it measures the total output produced at different levels of input usage. The marginal cost curve is also not affected, as it measures the additional cost of producing one more unit of output.

If a Firm Improves Its Production Method, This Change Will