Cost Curves Shift If

question 85

Multiple Choice

Cost curves shift if
i.technology changes.
ii.the prices of factors of production change.
iii.productivity changes.

• A) only i
• B) i and iii
• C) only ii
• D) i and ii
• E) i, ii, and iii

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Definitions:

Utility Function

An analytic depiction of the way individuals order assortments of items based on their contentment or value received.

Equivalent Variation

A monetary measure of the change in utility or satisfaction that a consumer experiences due to a change in prices, holding utility constant.

Consumption

The use of goods and services by households or individuals for personal satisfaction or need.

Utility Function

A mathematical representation of how a set of goods or services provide a level of satisfaction or utility to an individual or entity.