An Increase in Total Factor Productivity Shifts the Production Function

question 33

Multiple Choice

An increase in total factor productivity shifts the production function

• A) upward and increases the marginal product of labour.
• B) upward and decreases the marginal product of labour.
• C) downward and increases the marginal product of labour.
• D) downward and decreases the marginal product of labour.
• E) upward and increases the marginal product of capital.

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Definitions:

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