Consider a Firm's Short- Run Cost Curves

question 78

Multiple Choice

Consider a firm's short- run cost curves.When capital is a fixed factor,a rise in the cost of labour

• A)shifts the marginal cost curve upwards.
• B)shifts the AVC curve down.
• C)leaves the MC curve unchanged.
• D)shifts the total product curve downwards.
• E)leaves the ATC curve unchanged.

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Definitions:

Demand Function

A mathematical representation showing the quantity of a good or service that consumers are willing and able to purchase at various prices.

Reservation Price

The maximum price a buyer is willing to pay for a good or the minimum price a seller is willing to accept.

Good 1

A theoretical or specific item in economics used to model transactions, market behavior, or consumer choice.

Reservation Price

The highest price a consumer is willing to pay for a good or service, beyond which they would choose not to make a purchase.