Use the following to answer questions: Figure: Change in the Total Product -(Figure: Change in the Total Product) Look at the figure Change in the Total Product. Which of the following choices is a likely cause of the shift in production function from TP₁ to TP₂? A) Workers in the firm are less productive on average. B) The firm employed more of a variable input in the short run. C) Available technology has decreased. D) The firm employed more of a fixed input in the long run.

Question

Quizplus · Accepted Answer

The shift from TP1 to TP2 in the production function likely indicates an increase in production capacity, which can be caused by employing more of a fixed input in the long run.

Use the Following to Answer Questions