Suppose a technological innovation shifts the marginal cost curve downward. Which one of the following cost curves does NOT shift?
A) Firm's short-run supply curve
B) Average total cost curve
C) Average variable cost curve
D) Average fixed cost curve

Question

Quizplus · Accepted Answer

The technological innovation that shifts the marginal cost curve downward affects variable costs and has no impact on fixed costs, so the average fixed cost curve remains the same.

Suppose a Technological Innovation Shifts the Marginal Cost Curve Downward