If a Firm Develops Better Methods of Producing a Product

question 37

Multiple Choice

If a firm develops better methods of producing a product, then this process innovation can be expected to result in a(n)

• A)upward shift in both the total product and average cost curves.
• B)downward shift in both the total product and average cost curves.
• C)downward shift in the total product curve and an upward shift in the average cost curve.
• D)upward shift in the total product curve and a downward shift in the average cost curve.

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Definitions:

Direct Sellers

Sellers who sell face-to-face to consumers—typically in their homes—who use products for their personal use.

Socialization

The process by which children acquire the standards, values, and knowledge of their society.

Acquisition

The process of gaining new information or skills through experience, practice, or learning.

Standards

Established levels of quality or achievement that are used as a measure or benchmark.