If climate change starts creating earthquakes, storms, droughts and all manner of obstacles to production operations, the effects can be shown on effected production function graphs by
A)eliminating the increasing returns portion of the short run production function.
B)lowering the short run production function and reducing the numbers on each isoquant.
C)changing the curves of the isoquants to straight lines.
D)eliminating long run production functions because they are irrelevant.

Question

Quizplus · Accepted Answer

Climate change can cause disruptions in production operations, which can affect the short run production function by lowering it and reducing the numbers on each isoquant. This is because production inputs may become less available or less efficient, causing a decrease in output levels. The other options do not adequately describe the potential effects of climate change on production function graphs.

If Climate Change Starts Creating Earthquakes, Storms, Droughts and All