Refer to the diagram, which relates to Firm X. Suppose X implements an innovative new production method that shifts its total product curve from TP ₂ to TP ₁. Other things equal,
A)the average product of X's labor would fall.
B)the average total cost of X's output would decline.
C)X would supply less output at each product price than before.
D)the demand curve for X's product would shift to the right.

Question

Refer to the diagram, which relates to Firm X. Suppose X implements an innovative new production method that shifts its total product curve from TP ₂ to TP ₁. Other things equal,
A)the average product of X's labor would fall. 
B)the average total cost of X's output would decline. 
C)X would supply less output at each product price than before. 
D)the demand curve for X's product would shift to the right.

Quizplus · Accepted Answer

The Answer of  Refer to the diagram, which relates to Firm X. Suppose X implements an innovative new production method that shifts its total product curve from TP ₂ to TP ₁. Other things equal,
A)the average product of X's labor would fall. 
B)the average total cost of X's output would decline. 
C)X would supply less output at each product price than before. 
D)the demand curve for X's product would shift to the right.

Refer to the Diagram, Which Relates to Firm X