The Average Variable Cost Curve Will Shift Upward If

question 63

Multiple Choice

The average variable cost curve will shift upward if

• A)there is an increase in fixed cost.
• B)there is a technological advance.
• C)the price of the variable input decreases.
• D)the price of the variable input increases.
• E)the price of output increases.

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Definitions:

Economic Efficiency

A condition in which all resources are optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Consumer Surplus

The gap between the price consumers are prepared to pay for a good or service and the price they actually end up paying.

Consumer Surplus

The gap between what consumers are prepared to spend on a good or service and the actual amount they end up paying.

Consumer Surplus

The divergence in total intended consumer expenditure on a product or service and the total actual expenditure.