Suppose over time that a firm's production process undergoes capital-saving technological progress. This implies
A) the isoquants corresponding to any particular level of output will shift outward from the origin and the $MR T S_{L ,K}$=
along any ray from the origin will increase.
B) the isoquants corresponding to any particular level of output will shift outward from the origin and the $MR T S_{L ,K}$=
along any ray from the origin will decrease.
C) the isoquants corresponding to any particular level of output will shift inward toward the origin and the $MR T S_{L ,K}$=
along any ray from the origin will increase.
D) the isoquants corresponding to any particular level of output will shift inward toward the origin and the $MR T S_{L ,K}$=
along any ray from the origin will decrease.

Question

Suppose over time that a firm's production process undergoes capital-saving technological progress. This implies
A) the isoquants corresponding to any particular level of output will shift outward from the origin and the $MR T S_{L ,K}$=
 along any ray from the origin will increase.
B) the isoquants corresponding to any particular level of output will shift outward from the origin and the $MR T S_{L ,K}$=
 along any ray from the origin will decrease.
C) the isoquants corresponding to any particular level of output will shift inward toward the origin and the $MR T S_{L ,K}$=
 along any ray from the origin will increase.
D) the isoquants corresponding to any particular level of output will shift inward toward the origin and the $MR T S_{L ,K}$=
 along any ray from the origin will decrease.

Quizplus · Accepted Answer

The Answer of Suppose over time that a firm's production process undergoes capital-saving technological progress. This implies
A) the isoquants corresponding to any particular level of output will shift outward from the origin and the $MR T S_{L ,K}$=
 along any ray from the origin will increase.
B) the isoquants corresponding to any particular level of output will shift outward from the origin and the $MR T S_{L ,K}$=
 along any ray from the origin will decrease.
C) the isoquants corresponding to any particular level of output will shift inward toward the origin and the $MR T S_{L ,K}$=
 along any ray from the origin will increase.
D) the isoquants corresponding to any particular level of output will shift inward toward the origin and the $MR T S_{L ,K}$=
 along any ray from the origin will decrease.

Suppose Over Time That a Firm's Production Process Undergoes Capital-Saving MRTSL,KMR T S_{L ,K}MRTSL,K​

Suppose Over Time That a Firm's Production Process Undergoes Capital-Saving $MR T S_{L ,K}$