Process Innovation Causes an Upward Shift in a Firm's Total

question 95

Multiple Choice

Process innovation causes an upward shift in a firm's total product curve and

• A) a decrease in its average product.
• B) a downward shift in its average total cost curve.
• C) an upward shift in its average total cost curve.
• D) an upward shift in its marginal revenue curve.

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Definitions:

Licensing Agreement

A legal contract by which a rights holder permits another party to use a property, such as intellectual property or technology, under specified conditions.

Foreign Corrupt Practices Act

A U.S. law that prohibits American companies and individuals from bribing foreign officials to retain or obtain business.

Countertrade

A form of international trade in which goods or services are exchanged directly for other goods or services without using a medium of exchange, such as money.

Mining Equipment

Tools, machinery, and vehicles used in the operation of extracting minerals, metals, and other valuable materials from the earth.