The Introduction of New and More Productive Technology into the Workplace

question 58

Multiple Choice

The introduction of new and more productive technology into the workplace will generally cause the production possibilities curve to

• A) become steeper.
• B) shift away from the origin.
• C) become flatter.
• D) shift towards the origin.
• E) change in an unpredictable way.

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Definitions:

Cost Function

A mathematical representation of how a firm's costs change with different levels of output, typically showing the relationship between costs and output quantity.

Average Age

A statistic that represents the mean age of a group of individuals or objects.

Learning by Doing

The process where productivity is increased through practice, self-perfection, and minor innovations.

Cost-Output Elasticity

A measure of how responsive the total cost of production is to changes in the quantity of output produced.