Figure 8-5 -Refer to Figure 8-5. Which of the following would most likely cause the average total cost curve of a firm producing steel bolts to shift from ATC₁ to ATC₂? A) an increase in demand for steel bolts B) an increase in the market price of steel bolts C) diminishing returns for the variable factors used to produce steel bolts D) an increase in the price of steel

Question

Quizplus · Accepted Answer

An increase in the price of steel, which is a key input in the production of steel bolts, would increase production costs, causing the average total cost curve to shift upwards from ATC1 to ATC2.

Figure 8-5 -Refer to Figure 8-5. Which of the Following Would Most