Process innovation raises the firm's total product curve and lowers its average total cost curve.

Name: Process innovation raises the firm's total product curve and lowers its average total cost curve.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Process innovation improves the efficiency of production, allowing a firm to produce more output from the same inputs, which raises its total product curve. It also reduces the cost of production per unit, leading to a lower average total cost curve.

Process Innovation Raises the Firm's Total Product Curve and Lowers