Exhibit 21-9

-Refer to Exhibit 21-9. Let MC₁ and ATC₁ represent the initial cost curves of a peanut butter producer. In which of the following cases is it most likely that the firm's curves will shift leftward to MC₂ and ATC₂?

Question

Exhibit 21-9

-Refer to Exhibit 21-9. Let MC₁ and ATC₁ represent the initial cost curves of a peanut butter producer. In which of the following cases is it most likely that the firm's curves will shift leftward to MC₂ and ATC₂?

Quizplus · Accepted Answer

When the market price of peanuts increases, the cost of production for peanut butter producers also increases, leading to a leftward shift in the marginal cost (MC) and average total cost (ATC) curves.

Exhibit 21-9 ​

Exhibit 21-9