If There Is a Fall in All Factor Prices Faced

question 59

Multiple Choice

If there is a fall in all factor prices faced by a firm,

• A) there will be a downward shift in the long- run average cost curve but not in the short- run average cost curve.
• B) there will be no change in the cost curves in the long run.
• C) the firm will move to a lower point on both its long- run and short- run average cost curves.
• D) the firm will move to a lower point on its long- run average cost curve only.
• E) both the long- run and short- run average cost curves will shift downward.

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Definitions:

Semantic Memory

A type of long-term memory that involves the storage of general knowledge and facts about the world, not tied to personal experiences.

Episodic Memory

The subgroup of long-term memory that involves the recollection of specific events, situations, and experiences.

Names of States

Reference to the official titles of political or geographic entities that make up a country, such as the states in the United States of America.

Episodic Memory

A form of memory that involves the recollection of specific events, situations, and experiences from one's personal past.