Suppose that productivity-enhancing technological progress affected more the production of chairs than the production of tables. This can be depicted using a production possibilities frontier in which
A) only the chair axis intercept increases.
B) only the table axis intercept decreases.
C) both intercepts increase; however, the chair intercept increases by more.
D) both intercepts increase; however, the chair intercept increases by less.
Question 2
Suppose that each worker must use only one shovel to dig a trench, and shovels are useless by themselves. In the long run, the firm will experience
A) increasing returns to scale.
B) constant returns to scale.
C) decreasing returns to scale.
D) The returns to scale cannot be determined from the information provided.
Areas of differing productivity and diversity in a wetland. (a) Typha dominates core habitats, while
Charting Progress: Weekly Weight Loss Log
Areas of the United States, Mexico, and Cuba will be affected by a rise of just 100 cm
Role of Productivity in Determining Growth, 1975–2009
Effect of Productivity Improvement in the Malthusian Model
Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ...