Ask Question
31 December, 12:40

If a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis, and the technology coefficient rises from 0.40 to 0.50, it would cause resources:

+5
Answers (1)
  1. 31 December, 12:55
    0
    Production function would shift downward to a lower level of real GDP.

    Explanation:

    given data

    technology coefficient rises = 0.40 to 0.50

    solution

    as here technological coefficient is the amount of input required for 1 unit of output

    so that when it increase from 0.4 to 0.5

    so that it implies that amount of input required for 1 unit of output has increase by 0.1

    so here more labor is required for producing same level of real GDP

    so that production function would shift downward to a lower level of real GDP.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis, and the technology coefficient ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers