​ ​-Refer to Exhibit 3-2.Which of the Following Would Result in Result

question 80

Multiple Choice

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-Refer to Exhibit 3-2.Which of the following would result in a movement from point B on D₂ to point A on D₁?

• A) There was an increase in income (assuming that good X is an inferior good)and technology remained constant.
• B) There was an increase in income (assuming that good X is a normal good)and technology remained constant
• C) There was an increase in income (assuming that good X is an inferior good)and technology improved.
• D) There was an increase in income (assuming that good X is a normal good)and technology declined.

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Definitions:

Marginal Cost

The expense of fabricating another single unit of a product or service.

Average Variable Cost

The total variable costs of production divided by the quantity of output, showing the average cost of producing each unit excluding fixed costs.

Average Total Cost

The total cost of producing a certain quantity of a good divided by that quantity, representing the cost per unit of output.

Total Fixed Costs

The total of all expenses that do not change with the amount of production or output.