If a Technological Advance Reduces the Amount of Variable Resources

question 393

Multiple Choice

If a technological advance reduces the amount of variable resources needed to produce any level of output, then the

• A)AVC curve will shift upward.
• B)MC curve will shift downward.
• C)ATC curve will shift upward.
• D)AFC curve will shift downward.

---

Definitions:

Determine Costs

The process of calculating the total expenditure required for producing a product or service, including materials, labor, and overhead expenses.

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation, subject to testing and validation.

Tentative Statement

An initial proposition made without complete confidence or evidence, subject to further verification.

Scientific Law

A statement based on repeated experimental observations that describes some aspects of the universe, always under the same conditions.