When More Capital Is Used in Production

question 164

Multiple Choice

When more capital is used in production,

• A)the average total cost curve shifts left.
• B)the average fixed cost curve shifts up.
• C)fixed costs do not change, by definition.
• D)only the respective fixed cost curves are affected.
• E)the average variable cost curve does not change.

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Definitions:

Best Interest

A principle that emphasizes acting for the greatest benefit or advantage of all parties involved.

Benefit

An advantage, improvement, or gain that is obtained from an action, decision, or situation.

Statement Of Action

A document or declaration outlining specific steps or measures that need to be taken in order to achieve a certain goal or objective.

Objectives

Specific, measurable, achievable, relevant, and time-bound goals set by individuals or organizations to direct effort and measure performance.