Suppose a Worker at a Computer Company Rearranges Existing Machines

question 127

Multiple Choice

Suppose a worker at a computer company rearranges existing machines and labor and increases production in the process. Using the production function, with output on the vertical axis and labor on the horizontal axis, this would be described as

• A)an upward shift of the curve combined with an upward movement along the curve.
• B)a movement upward along the curve.
• C)a movement downward along the curve.
• D)a downward shift of the curve.
• E)an upward shift of the curve.

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Definitions:

Demand

The total amount of a good or service that consumers are willing and able to purchase at various prices during a specified period.

Complementary Goods

Products or services that are used together, where the use of one increases the value of the other.

Substitute Products

Goods or services that can be used in place of each other; when the price of one increases, demand for the substitute is likely to increase.

Electronic Textbooks

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