Figure 13-1 Suppose the Production Function Shifts from TP1 to TP2

question 6

Multiple Choice

Figure 13-1
Suppose the production function shifts from TP1 to TP2.
-Refer to Figure 13-1.Which of the following could explain why the total product curve shifted in this diagram?

• A) A reduction in capital equipment available to the firm.
• B) Labor skills have become rusty and outdated in the firm.
• C) The firm has developed new technology in its production facility.
• D) The firm is now receiving a higher price for its product.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check the accuracy of the accounts.

Annual Accounting Period

A 12-month period over which a company reports its financial performance, often aligned with the calendar year or fiscal year.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts and prepare the ledger for the next period.

Financial Statements

Consolidated documents such as the balance sheet, income statement, and cash flow statement that summarize a company’s financial performance.