When a fiRm's Productivity Increases, Its Short-Run Average Total Cost

question 37

Multiple Choice

When a firm's productivity increases, its short-run average total cost curve _____.

• A) will not change
• B) shifts down to the right
• C) becomes steeper
• D) becomes parallel to the horizontal axis

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Definitions:

365-Day Year

A calendar method that assumes each year has 365 days for the purpose of interest calculation, ignoring leap years.

Milling Machine

A tool used in machining processes for shaping metal and other solid materials, utilizing rotary cutters to remove material.

Ordinary Simple Interest

Interest calculated only on the principal amount, not on the interest that accrues over time.

360-Day Year

An artificial accounting period used in finance that simplifies the calculation of interest by assuming each month has 30 days, resulting in a calendar year of 360 days.