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 methods, which can reduce the average total cost of production. This is because the firm can produce the same amount of output using fewer inputs or produce more output from the same amount of inputs, leading to a decrease in the cost per unit of output.

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