The productivity changes resulting from research and development would be best represented by
A) An upward shift of a firm's production function
B) A downward shift of a firm's production function
C) The firm's isoquants shifting away from the origin
D) A movement to the northeast along the firm's production function

Question

Quizplus · Accepted Answer

Research and development typically leads to technological improvements, which enhance productivity. This is represented by an upward shift of the firm's production function, indicating that more output can be produced with the same level of inputs.

The Productivity Changes Resulting from Research and Development Would Be