An Increase in Variable Costs

question 28

Multiple Choice

An increase in variable costs:

• A) will result in the firm's marginal, average total, and average variable cost curves shifting upward by less than the cost increase.
• B) will result in the firm's marginal, average total, and average variable cost curves shifting upward by the amount of the cost increase.
• C) will shift the industry supply curve upward (to the left) by a smaller amount.
• D) will shift the industry supply curve upward (to the left) by a larger amount.

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Definitions:

Pay Installments

To make payments for a good or service over a period of time in portions, rather than paying the full amount upfront.

Severance

An owner’s removal of chattel that he has affixed; separation or division of joint ownership; action by one of the co-owners that is inconsistent with joint tenancy.

Joint Ownership

Shared ownership of property by two or more parties where all owners have equal rights and obligations regarding the property.

Right Of Way

A type of easement that allows the crossing of another’s land.