How Would a $10 Increase in Per-Unit Input Costs Affect

question 7

Multiple Choice

How would a $10 increase in per-unit input costs affect a price-taking firm's supply curve?

• A) MC would increase by $10, and AC would decrease by $10.
• B) AC would increase by $10, and MC would decrease by $10.
• C) MC and AC would both decrease by $10.
• D) MC and AC would both increase by $10.