-In a Diagram,how Is the Effect of an Increase in the Price

question 85

Multiple Choice

-In a diagram,how is the effect of an increase in the price of a variable input illustrated?

• A)The MC,AVC,ATC and AFC curves would shift down.
• B)The MC,AVC,ATC and AFC curves would shift up.
• C)Only the MC,AVC,and ATC curves would shift down.
• D)Only the MC,AVC,and ATC curves would shift up.

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Definitions:

Market Price

The current value at which an asset or service can be bought or sold in the marketplace.

Shares Outstanding

The total number of a company's shares that are currently owned by all its shareholders, including those held by institutional investors and restricted shares held by company’s insiders.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of one's holdings remains the same.

Shareholder Wealth

The total value of a shareholder's equity in a company, taking into account the current market value of shares owned.