If Input Prices Rise as Industry Output Expands,then a Perfectly

question 24

Multiple Choice

If input prices rise as industry output expands,then a perfectly competitive firm's marginal cost and average cost curves will:

• A) shift upward.
• B) shift downward.
• C) not shift. As the firm increases production, however, costs increase as the firm moves upward to the right along these curves.
• D) not shift. As the firm increases production, however, costs decrease as the firm moves downward to the left along these curves.

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Definitions:

Strict Liability Theory

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Systematic assessments that evaluate how well a company or organization adheres to environmental laws and regulations.

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A program established to fund the cleanup of sites contaminated with hazardous substances and pollutants.

Environmental Protection Agency

A governmental organization responsible for the regulation of activities to protect human health and the environment by enforcing laws related to air and water quality and hazardous waste.