An Increase in Total Factor Productivity Shifts the Production Function

question 56

Multiple Choice

An increase in total factor productivity shifts the production function

• A)downward and increases the marginal product of labour.
• B)upward and reduces the marginal product of labour.
• C)downward and reduces the marginal product of labour.
• D)upwards and increases the marginal product of labour.
• E)downward and also reduces its slope.