Consider the Short-Run and Long-Run Cost Curves for a Firm

question 30

Multiple Choice

Consider the short-run and long-run cost curves for a firm.If there is an improvement in the firm's technology,

• A)the firm will move to a lower point on both its long-run and short-run average cost curves.
• B)the firm will move to a lower point on its long-run average cost curve only.
• C)both the long-run and short-run average cost curves will shift downward.
• D)there will be a downward shift in the long-run average cost curve but not in the short-run average cost curve.
• E)there will be no change in the cost curves in the long run.