A Positive Technological Change Which Decreases the Price of Inputs

question 151

Multiple Choice

A positive technological change which decreases the price of inputs Telus uses to provide mobile phone service will cause

• A)Telus' average total cost curve and marginal cost curve to shift downward.
• B)Telus' average total cost curve but not its marginal cost curve to shift downward.
• C)Telus' marginal cost curve but not its average total cost curve to shift downward.
• D)a movement downward along Telus' current average total cost curve.

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Definitions:

Variable Costs

Expenses that vary directly with the amount of production output.

Total Costs

Total costs encompass the sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Average Total Costs

The total cost of production divided by the number of units produced, representing the per-unit production cost.

Marginal Costs

The charge for generating one more unit of a product or service.