An Increase in Total Factor Productivity Shifts the Production Function

Multiple Choice

An increase in total factor productivity shifts the production function

A) upward and increases the marginal product of labour.
B) upward and decreases the marginal product of labour.
C) downward and increases the marginal product of labour.
D) downward and decreases the marginal product of labour.
E) upward and increases the marginal product of capital.