The MC curve shifts upward if
A)factor prices rise.
B)a new technology is introduced.
C)more workers are hired.
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

An upward shift in factor prices means that the cost of producing each unit of output has increased, resulting in higher marginal costs for the firm. This leads to an upward shift in the MC curve. The introduction of new technology or hiring more workers may result in a downward shift in the MC curve as they may reduce the cost of producing each unit of output. Therefore, only option A is the correct choice.

The MC Curve Shifts Upward If