If Input Prices Rise as Industry Output Expands, What Will

question 77

Multiple Choice

If input prices rise as industry output expands, what will happen to a perfectly competitive firm's marginal cost and average cost curves?

• A) They will not shift; as the firm increases production, however, costs decrease as the firm moves downward to the left along these curves.
• B) They will not shift; as the firm increases production, however, costs increase as the firm moves upward to the right along these curves.
• C) They will shift downward.
• D) They will shift upward.

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Definitions:

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A range of psychological disorders characterized by abnormal or disturbed eating habits, which can severely impact health and well-being.

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The process by which individuals look to others in their environment for cues on how to react or behave in uncertain situations.