Use the following to answer question:
Figure 8.13
-(Figure 8.13) What could have caused the supply and average variable cost curves to shift outward?

Question

Use the following to answer question:
Figure 8.13 
-(Figure 8.13) What could have caused the supply and average variable cost curves to shift outward?

Quizplus · Accepted Answer

A decrease in wages would reduce the cost of production, allowing firms to supply more at each price level, thus shifting the supply curve outward. It would also lower the average variable cost, shifting that curve outward as well.

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