If the Price of a Variable Input Increases, Then

question 36

Multiple Choice

If the price of a variable input increases, then:

• A) the total cost curve will shift up.
• B) the average total cost curve will shift down.
• C) the marginal cost curve will shift down.
• D) the fixed cost curve will shit up.

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Definitions:

Assumed Shares

Shares that are considered to have been issued in hypothetical scenarios, such as in the calculation of diluted earnings per share.

Stock Dividend

Distribution of additional shares of a company's stock to shareholders instead of cash, usually determined as a percentage of the shares already owned.

Total Stockholders' Equity

The total amount of assets remaining in a business after all liabilities are paid off, representing the owners' claim on assets.