True or False: If Microsoft decides to increase its capitalinvestment in new design software, the...

True or False: If Microsoft decides to increase its capital investment in new design software, the total product curve swivels upward and the cost curve shifts up.

A. True

B. False

Expert Solution

If Microsoft decides to increase its capital investment in new design software, it will increase its total cost of production. As a result, its cost curve will shift up. Now, the increase in its capital investment in new design software will increase productivity which in turn will increase the total product of Microsoft. So, the total product curve swivels upward. Hence, If Microsoft decides to increase its capital investment in new design software, the total product curve swivels upward and the cost curve shifts up.

Answer: A. True

Rahul Sunny answered 2 years ago

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