Figure 8-12 -In Figure 8-12, which of the following would most likely cause the average total cost curve of a firm producing molded plastic chairs to shift from ATC₁ to ATC₂? A) an increase in demand for plastic chairs B) an increase in the market price of plastic chairs C) an increase in the price of the plastic used to produce the chairs D) a reduction in corporate income taxes

Question

Quizplus · Accepted Answer

An increase in the price of the plastic used to produce the chairs would increase production costs, causing the average total cost curve to shift upwards from ATC1 to ATC2.

Figure 8-12 -In Figure 8-12, Which of the Following Would Most Likely