Figure 13-3

-Refer to Figure 13-3.Which of the following could explain why the total product curve shifted in this diagram?

Question

Figure 13-3
 
-Refer to Figure 13-3.Which of the following could explain why the total product curve shifted in this diagram?

Quizplus · Accepted Answer

The development of new technology in the production facility would likely result in a shift in the total product curve, as the firm is now able to produce more output with the same amount of inputs. A reduction in capital equipment (choice A) or outdated labor skills (choice B) would likely result in a decrease in the total product curve, as the firm would be less productive. A higher price for the product (choice D) would not necessarily result in a shift in the total product curve, as the curve represents output levels at different levels of input, not the price for the product.

Figure 13-3 -Refer to Figure 13-3.Which of the Following Could Explain Why