Suppose Over Time That a Firm's Production Process Undergoes Capital-Saving $MR T S_{L ,K}$

question 59

Multiple Choice

Suppose over time that a firm's production process undergoes capital-saving technological progress. This implies

• A) the isoquants corresponding to any particular level of output will shift outward from the origin and the \(MR T S_{L ,K}\)=
• along any ray from the origin will increase.
• B) the isoquants corresponding to any particular level of output will shift outward from the origin and the \(MR T S_{L ,K}\)=
• along any ray from the origin will decrease.
• C) the isoquants corresponding to any particular level of output will shift inward toward the origin and the \(MR T S_{L ,K}\)=
• along any ray from the origin will increase.
• D) the isoquants corresponding to any particular level of output will shift inward toward the origin and the \(MR T S_{L ,K}\)=
• along any ray from the origin will decrease.

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Definitions:

Type II Error

A statistical error that occurs when the null hypothesis is not rejected when it is false, also known as a "false negative" finding.

Level Of Significance

The threshold probability used in hypothesis testing to determine if the null hypothesis can be rejected, typically denoted by alpha (α).

Power Of The Test

The likelihood that a test will correctly reject a false null hypothesis, indicating the test's sensitivity.

Null Hypothesis

A hypothesis that there is no significant difference between specified populations, any observed difference being due to sampling or experimental error.