Figure 13-1
-Refer to Figure 13-1. Which of the following could explain why the total product curve would shift from TP1 to TP2?
A) There is less capital equipment available to the firm.
B) Labor skills have become rusty and outdated in the firm.
C) The firm has developed improved production technology.
D) The firm is now receiving a higher price for its product.

Question

Figure 13-1 
-Refer to Figure 13-1. Which of the following could explain why the total product curve would shift from TP1 to TP2?
A) There is less capital equipment available to the firm. 
B) Labor skills have become rusty and outdated in the firm. 
C) The firm has developed improved production technology. 
D) The firm is now receiving a higher price for its product.

Quizplus · Accepted Answer

The shift from TP1 to TP2 could be explained by the firm developing improved production technology. This would allow the firm to produce more output with the same inputs, resulting in an increase in total product. Less capital equipment (choice A) or outdated labor skills (choice B) would likely lead to a decrease in total product, while a higher price for the product (choice D) would not shift the total product curve but instead affect the marginal product curve.

Figure 13-1 -Refer to Figure 13-1. Which of the Following Could Explain