Which of the Following Would Shift the Production Function Upward

question 121

Multiple Choice

Which of the following would shift the production function upward?

• A) an increase in the price of oil
• B) an increase in the availability of a natural resource
• C) a decrease in the supply of labor
• D) an increase in the nominal wage rate

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Definitions:

Output

The total amount of goods and services produced by an economy or an individual business over a specific period.

Total Cost

The complete cost of producing a specific quantity of goods or services, including both fixed and variable costs.

Average Cost

This is the total cost of production divided by the number of goods produced, also known as the cost per unit.