Refer to Figure 13-1. Suppose the production function shifts from TP2 to TP1. Such a shift in the total product curve is most likely due to a decrease in the firm's

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Alessandro Taylor

Business

11 July, 19:02

Refer to Figure 13-1. Suppose the production function shifts from TP2 to TP1. Such a shift in the total product curve is most likely due to a decrease in the firm's

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Shaun Neal · Answer 1

Suppose the production function shifts from TP2 to TP1. Such a shift in the total product curve is most likely due to a decrease in the firm's productivity.

Explanation

Production in terms of an economic concept is the quantity of physical input to total quantity of physical output. It relates to the physical input of the production to the physical output of the factors of production. Production function can also be said to be the mathematical relation or function in which maximum output can be obtained with a given amount of input. On the graph, if the production function shifts from TP2 to Tp1 it happens owing fall in productivity levels. If productivity is less, the total product curve is going to shift to the earlier level. Due to less productivity, there is a backward shift in the production curve.