The productivity changes resulting from research and development would be best represented by
A) An upward shift of a firm's production function
B) A downward shift of a firm's production function
C) The firm's isoquants shifting away from the origin
D) A movement to the northeast along the firm's production function

Question

Quizplus · Accepted Answer

An upward shift of a firm's production function represents an increase in productivity resulting from research and development. This indicates that for the same inputs, more output can be produced, which would increase the firm's efficiency and profitability.

The Productivity Changes Resulting from Research and Development Would Be