Figure 8.5.2 -Refer to Figure 8.5.2 Above. the Shift in the Marginal

question 161

Multiple Choice

Figure 8.5.2
-Refer to Figure 8.5.2 above. The shift in the marginal cost curve implies:

• A) an increase in the price of an input, which reduces the profit-maximizing level of output.
• B) an decrease in the price of an input, which increases the profit-maximizing level of output.
• C) a decrease in the price of an input, which shifts the marginal cost curve upward.
• D) a deadweight loss when costs increase and output remains the same.

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