The a Firm's Short-Run Cost Curves Shifts When There Is

question 189

Multiple Choice

The a firm's short-run cost curves shifts when there is a change in

• A) technology
• B) the prices of factors of production
• C) the quantity of outputs
• D) Both answers A and B are correct.

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Definitions:

Production Possibility Frontier

A curve depicting the maximum attainable combinations of two or more goods and services that can be produced with available resources and technology.

Opportunity Costs

The cost of choosing one option over another, represented by the value of the opportunities or benefits the second-best choice would have provided.

Aggregate Demand

The total demand for goods and services within a particular market or economy at a given overall price level and in a given time period.

Full Employment

A situation where all available labor resources are being used in the most economically efficient way.