Neutral technical progress allows a firm to
A)produce more output with the same inputs.
B)use less capital to produce more output.
C)use less labor to produce more output.
D)produce the same amount of output with the same inputs.

Question

Quizplus · Accepted Answer

Neutral technical progress refers to improvements in technology that allow a firm to produce more output with the same inputs. This means that the firm can increase its production without increasing its labor or capital inputs. Therefore, option A is the correct answer. Option B refers to capital-saving technical progress, while option C refers to labor-saving technical progress. Option D refers to no technical progress.

Neutral Technical Progress Allows a Firm to