Suppose That Wood Is the Primary Variable Input in the Production

question 63

Multiple Choice

Suppose that wood is the primary variable input in the production of furniture. If the price of wood increases, which of the following is likely to happen?

• A) The marginal cost curve will shift upward but the average total cost curve will not shift.
• B) The average fixed cost curve will shift upward but the marginal cost curve will not shift.
• C) The marginal and average fixed cost curves will shift upward, but the average total cost curve will not shift.
• D) The average total cost curve will shift upward, but the average fixed cost curve will not

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Definitions:

Dilate

To widen or enlarge.

Cervix

The lower, narrow part of the uterus that connects to the vagina in female anatomy.

Lightening

In pregnancy, the descent of the fetus into the pelvic cavity before the onset of labor.

Diaphragm

The diaphragm is a large, dome-shaped muscle located below the lungs that plays a crucial role in the respiratory process by helping to inhale and exhale air.