If the price of a fixed input increases, the fixed cost curve and the average total cost curve shift upward, but the marginal cost curve and the average variable cost curve do not shift.

Question

Quizplus · Accepted Answer

When the price of a fixed input increases, the fixed cost curve and the average total cost curve will shift upward because fixed costs are not affected by changes in output. However, the marginal cost curve and the average variable cost curve will not shift because variable costs are the only costs that change with changes in output.

If the Price of a Fixed Input Increases, the Fixed