When Is a fiRm's Short-Run Average Total Cost Curve Likely

question 3

Multiple Choice

When is a firm's short-run average total cost curve likely to shift up to the right?

• A) The acquisition of new machines increases the productivity of labour.
• B) Due to a higher attrition rate, the cost of hiring and training labour increases.
• C) The firm is able to source its raw materials from a cheaper supplier.
• D) The firm moved production to a new factory building and now pays a higher rent.

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Definitions:

Status Obligations

Responsibilities or behaviors expected from an individual based on their social, professional, or familial position.

Enculturation

The process of transmitting a group’s culture from one generation to the next.

Ethnocentrism

Belief that your cultural traditions and assumptions are superior to those of others.

Cultural Context

Aspects of the environment and/or nonverbal cues that convey information not explicitly communicated through language.