A positive technological change which decreases the price of inputs Telus uses to provide mobile phone service will cause

Question

Quizplus · Accepted Answer

A decrease in input costs will lower Telus' average total cost curve and marginal cost curve, shifting them downward. This means that Telus will be able to produce its mobile phone services at a lower cost and may offer lower prices to consumers or increase its profit margins. A and B are both possible answers, but A is the better choice as it includes both curves. C and D are unlikely since a technological change would affect the entire cost structure of Telus, not just its marginal cost or current average total cost curve.

A Positive Technological Change Which Decreases the Price of Inputs