The profit-enhancing impact of process innovation tends to be on all of the following, except
A)the firm's TP or MP curves.
B)the firm's MR curve.
C)the firm's cost curves.
D)the firm's productivity.

Question

Quizplus · Accepted Answer

Process innovation primarily affects a firm's production efficiency and cost structure, directly influencing its total product (TP), marginal product (MP) curves, cost curves, and overall productivity. However, it does not directly impact the firm's marginal revenue (MR) curve, as MR is determined by market demand and pricing strategies rather than internal production processes.

The Profit-Enhancing Impact of Process Innovation Tends to Be on All