If we graph the average product of labor as a function of the quantity of capital employed by a firm operating along its production function,when the technology improves while holding both labor and capital constant,the average product of labor curve is

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Quizplus · Accepted Answer

When technology improves while holding both labor and capital constant, the production function shifts upward, increasing the average product of labor at every level of the quantity of capital employed. Therefore, the average product of labor curve shifts upwards.

If We Graph the Average Product of Labor as a Function