When a firm increases the amount of capital it uses, the
A)average total cost curve shifts down.
B)average total cost curve shifts up.
C)average total cost curve twists, increasing ATC at low output levels and decreasing ATC at high output levels.
D)average variable cost curve shifts up.
E)average fixed cost decreases.

Question

Quizplus · Accepted Answer

The Answer of When a firm increases the amount of capital it uses, the
A)average total cost curve shifts down.
B)average total cost curve shifts up.
C)average total cost curve twists, increasing ATC at low output levels and decreasing ATC at high output levels.
D)average variable cost curve shifts up.
E)average fixed cost decreases.

When a Firm Increases the Amount of Capital It Uses