Which of the Following Would Shift the FE Line to the Right

question 85

Multiple Choice

Which of the following would shift the FE line to the right?

• A)An adverse supply shock
• B)A decrease in labor supply
• C)An increase in the capital stock
• D)An increase in the future marginal productivity of capital

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Definitions:

Minimum Average Total Cost

The lowest point on the average total cost curve, representing the least cost per unit at which a firm can produce any given level of output.

Perfectly Competitive Firm

A firm operating in a market where there are many sellers and buyers, the product is homogeneous, and there are no barriers to entry or exit.

Industry Losses

The total amount by which the expenses and costs of businesses in a certain industry exceed their total revenues.

Economic Profits

The financial outcome derived from removing all explicit and implicit costs from the aggregate revenue.