Figure 13-1
-Refer to Figure 13-1. Which of the following could explain why the total product curve would shift from TP2 to TP1?
A) There is additional capital equipment available to the firm.
B) Labor skills have become rusty and outdated in the firm.
C) The firm has developed improved production technology.
D) The firm is now receiving a higher price for its product.

Question

Figure 13-1 
-Refer to Figure 13-1. Which of the following could explain why the total product curve would shift from TP2 to TP1?
A) There is additional capital equipment available to the firm. 
B) Labor skills have become rusty and outdated in the firm. 
C) The firm has developed improved production technology. 
D) The firm is now receiving a higher price for its product.

Quizplus · Accepted Answer

A shift from TP2 to TP1 indicates a decrease in productivity, which could be due to labor skills becoming rusty and outdated.

Figure 13-1 -Refer to Figure 13-1. Which of the Following Could Explain