When carmakers began to cut costs of producing cars by designing the chassis, engines, and transmissions so that different models could be produced on the same assembly line, production costs fell $240 per car. This change caused car makers' short-run average cost curves to:

Question

Quizplus · Accepted Answer

The reduction in production costs per car indicates that the short-run average cost curve shifted down, as it now costs less to produce each car.

When Carmakers Began to Cut Costs of Producing Cars by Designing