Which of the Following Is True About Technological Change

question 38

Multiple Choice

Which of the following is true about technological change?

• A)It will shift down the per-worker production function.
• B)It will shift up the per-worker production function.
• C)It will move the economy to a point beneath the per-worker production function.
• D)It will move the economy along a given per-worker production function.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable costs are subtracted, showing what's left over to cover fixed costs and generate profit.

Sales Volume

This refers to the total number of units of a product or service sold over a specific period.

Account Analysis

A method for analyzing cost behavior in which an account is classified as either variable or fixed based on the analyst’s prior knowledge of how the cost in the account behaves.

Mixed Cost

An expense that contains both fixed and variable components, changing in total with the level of activity though containing a constant element.