Introduction of a benefit that turns out to decrease productivity would cause a firm's isoprofit curve to
A) flatten.
B) become steeper.
C) remain unchanged.
D) become convex.

Question

Quizplus · Accepted Answer

If the introduction of a benefit decreases productivity, then the firm will have to spend more resources to achieve the same level of profit. This means that the cost of production has increased, causing the isoprofit curve to become steeper.

Introduction of a Benefit That Turns Out to Decrease Productivity