Lumicia Corporation spent $2 million to purchase a new technology that would lower its manufacturing cost by 15 percent. This will enable the company to sell its output cheaper than most other competitors. This improvement in the technology of production is most likely to result in a(n):
a. upward shift of its aggregate production function
b. downward shift of its aggregate production function.
c. rightward movement along its aggregate production function.
d. leftward movement along its aggregate production function.
a
Economics
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Merit goods are not provided by the market
Indicate whether the statement is true or false
Economics
Refer to the graph shown. The firm in this monopolistically competitive industry will:
A. incur economic losses of $70,000 per year. B. earn economic profits of $70,000 per year. C. incur economic losses of $140,000 per year. D. earn economic profits of $140,000 per year.
Economics