If technological change causes a shift in the production function, it will cause:
A)changes in the maximum output produced at all different combinations of inputs.
B)a shift in factor prices.
C)a shift in producer's rent.
D)a shift in capacity utilization.
E)all of the above.

Question

Quizplus · Accepted Answer

Technological change will affect the maximum output that can be produced with different combinations of inputs, as it alters the production function. The other options may be affected indirectly by a shift in the production function, but they are not direct effects of technological change.

If Technological Change Causes a Shift in the Production Function