Ask Question
31 December, 03:39

How do increases in technology affect the aggregate production function?

A. As technology increases, diminishing marginal product sets in such that each unit of technology produces less output.

B. With better technology, the aggregate production function shifts down because fewer workers are needed.

C. Even with technology increases, the aggregate production function will remain constant unless the technology increases are matched by increases in the physical capital stock.

D. With increases in technology, the aggregate production function shifts up, indicating more output is produced from the same amount of inputs.

+1
Answers (1)
  1. 31 December, 03:55
    0
    The answer is: D) With increases in technology, the aggregate production function shifts up, indicating more output is produced from the same amount of inputs.

    Explanation:

    Technological improvements in new manufacturing machines and tools enable the production of more manufactured goods using the input. As technology increases, the production function shifts upward, is steeper, and the marginal product of capital increases.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “How do increases in technology affect the aggregate production function? A. As technology increases, diminishing marginal product sets in ...” 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