Refer to the diagram, which relates to Firm A. Which of the following would shift A's average total cost curve from ATC ₁ to ATC ₂?
A)an increase in the price of a key component used by A in producing its product
B)a decrease in the incomes of A's customers
C)a move along A's total product curve (not shown)
D)an improved production method that shifts A's total product curve upward

Question

Refer to the diagram, which relates to Firm A. Which of the following would shift A's average total cost curve from ATC ₁ to ATC ₂?
A)an increase in the price of a key component used by A in producing its product 
B)a decrease in the incomes of A's customers 
C)a move along A's total product curve (not shown) 
D)an improved production method that shifts A's total product curve upward

Quizplus · Accepted Answer

The Answer of  Refer to the diagram, which relates to Firm A. Which of the following would shift A's average total cost curve from ATC ₁ to ATC ₂?
A)an increase in the price of a key component used by A in producing its product 
B)a decrease in the incomes of A's customers 
C)a move along A's total product curve (not shown) 
D)an improved production method that shifts A's total product curve upward

Refer to the Diagram, Which Relates to Firm A