When a firm uses technological improvements to increase output from the same amount of inputs, the result is
A) a new production function.
B) losses.
C) guaranteed profits.
D) diseconomies of scale.

Question

Quizplus · Accepted Answer

Technological improvements increase productivity, which means the firm can produce more output from the same amount of inputs. This results in a shift in the production function, allowing the firm to produce more using the same or lower costs. This can lead to economies of scale, which can result in higher profits for the firm.

When a Firm Uses Technological Improvements to Increase Output from the Same