Assume There Is an Improvement in Technology That Increases the Marginal

question 45

Multiple Choice

Assume there is an improvement in technology that increases the marginal product of each unit of labor.This would have the effect of:

• A)reducing the average total cost, average variable cost, and marginal cost of production.
• B)increasing the average total cost, average variable cost, and marginal cost of production.
• C)reducing the average variable cost and marginal cost of production, but average total cost would be unchanged.
• D)reducing the average total cost and average variable cost of production, but marginal cost would be unchanged.

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