FIGURE 8- 4
-Refer to Figure 8- 4.The firm is initially operating at point B.An improvement in technology would be represented by
A)a movement toward point D.
B)a new isocost curve.
C)a movement toward the origin.
D)a new isoquant map.
E)a shift to the curve indicated by Q = 2000.

Question

FIGURE 8- 4 
-Refer to Figure 8- 4.The firm is initially operating at point B.An improvement in technology would be represented by
A)a movement toward point D. 
B)a new isocost curve. 
C)a movement toward the origin. 
D)a new isoquant map. 
E)a shift to the curve indicated by Q = 2000.

Quizplus · Accepted Answer

An improvement in technology would be represented by a new isoquant map, as it allows the firm to produce the same level of output with fewer inputs or more output with the same inputs, shifting the isoquant map.