The figure below shows three different per-worker production functions: PF₁,PF₂,and PF₃.If PF₁ is the initial per-worker production function,which of the following reflects the impact of an increase in the level of technology? Figure 8.1 A)A movement from point D to point C B)An upward shift from PF₁ to PF₂ C)A downward shift from PF₁ to PF₃ D)A movement from point C to point D E)A movement from point D to point F

Question

Quizplus · Accepted Answer

An increase in the level of technology would result in an upward shift of the per-worker production function, as shown by the shift from PF₁ to PF₂. This shift represents an increase in the maximum amount of output that can be produced with a given amount of inputs.

The Figure Below Shows Three Different Per-Worker Production Functions: PF1,PF2,and

The Figure Below Shows Three Different Per-Worker Production Functions: PF₁,PF₂,and