A change in technology that shifts the firm's total product curve upward without changing the quantity of capital used
A) shifts the average total cost curve upward.
B) shifts the average total cost curve downward.
C) does not change the cost curves.
D) shifts the marginal cost curve upward.

Question

Quizplus · Accepted Answer

A technological improvement increases productivity, leading to lower average total costs as the same output can be produced with fewer inputs.

A Change in Technology That Shifts the Firm's Total Product