A Productivity Increase Is Illustrated by a Shift in the Production

question 125

Multiple Choice

A productivity increase is illustrated by a shift in the production function

• A)downward.
• B)leftward.
• C)upward.
• D)rightward.

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Definitions:

Producer Surplus

The difference between the amount producers are willing to supply a good for and the amount they actually receive.

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually pay.

Marginal Benefit

This is the additional benefit received from the consumption of one more unit of a good or service.

Output Level

Refers to the quantity of goods or services produced by a firm or economy at a given point in time.