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Figure 7.4
-(Figure 7.4) What could cause the movement from TC₁ to TC₂?

Name: Use the following to answer question: Figure 7.4 -(Figure 7.4) What could cause the movement from TC 1 to TC 2 ?
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Use the following to answer question: Figure 7.4 -(Figure 7.4) What could cause the movement from TC₁ to TC₂?

Quizplus · Accepted Answer

A technological change that increases the productivity of inputs would cause the movement from TC₁ to TC₂. This is because a technological change would allow the firm to produce more output with the same inputs, which would shift the total cost curve down.

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