Figure 12-1
-Refer to Figure 12-1.Suppose the production function shifts from TP1 to TP2.Such a shift in the total product curve is most likely due to an increase in the firm's
A) costs of production.
B) productivity.
C) product price.
D) market share.

Question

Figure 12-1 
-Refer to Figure 12-1.Suppose the production function shifts from TP1 to TP2.Such a shift in the total product curve is most likely due to an increase in the firm's
A) costs of production. 
B) productivity. 
C) product price. 
D) market share.

Quizplus · Accepted Answer

An increase in the total product curve from TP1 to TP2 means that the firm is able to produce more output with the same amount of inputs. This indicates an increase in productivity, which is likely the result of technological improvements, better management practices, or increased worker skills. A shift in the total product curve is not typically due to changes in costs of production, product price, or market share alone.

Figure 12-1 -Refer to Figure 12-1.Suppose the Production Function Shifts from TP1