Suppose that you have drawn a total product curve for labor given a specific technology.Now let some sort of technological change increase the productivity of labor.A new total product curve would have to be drawn:
A)above the old with a steeper slope for any level of employment greater than zero.
B)above the old with a flatter slope for any level of employment greater than zero.
C)below the old with a steeper slope for any level of employment greater than zero.
D)below the old with a flatter slope for any level of employment greater than zero.
E)directly over the old curve signifying no change in the total product graph; only the marginal product graph would change.

Question

Quizplus · Accepted Answer

An increase in the productivity of labor would result in a higher total output for any given level of employment. Therefore, the new total product curve would need to be above the old curve. Additionally, since the productivity has increased, the slope of the new curve would be steeper, indicating that each unit of labor now produces more output.

Suppose That You Have Drawn a Total Product Curve for Labor