In conceptual production functions, technological change is
A)Treated like an addition to the capital stock
B)Treated as a movement upward along a given production function
C)A factor that eliminates diminishing returns to a production function
D)Not considered and is therefore assumed to be constant in all deliberations

Question

Quizplus · Accepted Answer

Technological change is often treated like an addition to the capital stock because it enhances the productivity of existing inputs, similar to how additional capital would.

In Conceptual Production Functions, Technological Change Is