Capital expansion causes the average total cost curve to be shifted up for all levels of output.

Name: Capital expansion causes the average total cost curve to be shifted up for all levels of output.
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Capital expansion typically increases a firm's production capacity, which can lead to economies of scale. This often results in a lower average total cost for all levels of output, shifting the average total cost curve downward, not upward.

Capital Expansion Causes the Average Total Cost Curve to Be