Figure 4.1 Total Product Curves

-Refer to Figure 4.1. Which of the following could explain why the total product curve shifted?
A) a reduction in capital equipment
B) labor skills becoming rusty and obsolete
C) the development of new technology
D) a higher price for the product

Question

Figure 4.1 Total Product Curves
 
-Refer to Figure 4.1. Which of the following could explain why the total product curve shifted?
A) a reduction in capital equipment 
B) labor skills becoming rusty and obsolete 
C) the development of new technology 
D) a higher price for the product

Quizplus · Accepted Answer

The development of new technology can lead to improvements in production processes, making them more efficient and thus potentially shifting the total product curve upwards as more output can be produced with the same amount of inputs.