Question

if a firm adopts a technology that can increase production without increasing labor or other resource input, then
a its production possibilities curve remains unchanged.
b its production possibilities curve shifts inward.
c it will reach a point that is previously unattainable
d there is movement along the production possibilities curve.
? view available hints

Explanation:

A production possibilities curve (PPC) represents maximum output combinations with fixed resources and technology. A technology that boosts output without more inputs shifts the PPC outward, making previously unreachable output points attainable. Option A is wrong because the PPC changes. Option B is wrong as inward shift means reduced production capacity. Option D is wrong because movement along the curve only happens when reallocating existing resources, not when technology expands capacity.

Answer:

C. it will reach a point that is previously unattainable