contestada

If capital is increasing, then_____(A) there is an upward shift of the production function and an upward movement along the production function.(B) the production function will shift upward.(C) there is an upward movement along the production function.(D) the production function will shift downward.(E) there is a downward movement along the production function.

Respuesta :

Answer:

there is an upward shift of the production function and an upward movement along the production function

Explanation:

  • As the production function is dependent on the shift in the levels of input and the outputs. Thus an increase in the capital will raise productivity and output and thus the economic growth is set to change.
  • Taking the input factor as the capital which is a powerful tool or instrument of the labor as the quantity of capital is independent of the rates of interest and wages of the workers.  
  • And the capital increase or decrease affects the firm as unless the prices are known the curve of the production function cannot be completed.

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