A Significant Decrease in the Price of a Variable Input

question 56

Multiple Choice

A significant decrease in the price of a variable input causes the:

• A)marginal,average,and total cost curves to shift downward.
• B)average total cost curve to shift downward,causing a fall in output.
• C)average variable cost curve to shift downward while leaving the output level unchanged.
• D)marginal cost curve to shift downward.

---

Definitions:

Larger Organizations

Refers to big companies or entities that typically have a broad scope of operations, many employees, and a complex organizational structure.

Mechanistic

An organizational design that is highly structured and formal, with clear lines of authority, a detailed division of labor, and strict control mechanisms.

Product Departments

Specialized divisions within a company focused on managing and developing specific categories of products.

Centralized

A system in which decision-making authority is concentrated at the top levels of management or within a central location.