Which of the Following Factors Is Most Likely to Shift

question 186

Multiple Choice

Which of the following factors is most likely to shift IBM's total cost and marginal cost curves downward?

• A) a technological advance resulting in increased productivity
• B) higher property taxes charged by the municipal government
• C) increased wages to attract additional computer operators
• D) a reduction in subsidies from the state government

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Definitions:

Contribution Margin

The amount by which sales revenue exceeds variable costs of a product, indicating the contribution of sales to covering fixed costs and generating profit.

Market Share

The portion of a market controlled by a particular company, product, or brand, often expressed as a percentage of total sales in that market.

Sales Revenue

The total amount of money generated by the sale of goods or services related to the company's primary operations.

Competitive Set

A group of firms, products, or brands that a company considers its competitors in the market when making strategic decisions.