Use the following graph to answer the following questions.

-If capital is increasing,then
A) the production function will shift upward.
B) the production function will shift downward.
C) there is an upward movement along the production function.
D) there is a downward movement along the production function.
E) there is an upward shift of the production function and an upward movement along the production function.

Question

Use the following graph to answer the following questions.
 
-If capital is increasing,then
A) the production function will shift upward. 
B) the production function will shift downward. 
C) there is an upward movement along the production function. 
D) there is a downward movement along the production function. 
E) there is an upward shift of the production function and an upward movement along the production function.

Quizplus · Accepted Answer

An increase in capital leads to an upward movement along the production function, as more capital typically results in higher output for the same level of other inputs.

Use the Following Graph to Answer the Following Questions