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Exhibit 21-9 ​ Refer to Exhibit 21-9. Let MC1 and ATC1 Represent the and ATC1

Question 146

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Exhibit 21-9 ​
Exhibit 21-9 ​ Refer to Exhibit 21-9. Let MC<sub>1</sub> and ATC<sub>1</sub> represent the initial cost curves of an aluminum can producer. In which of the following cases is it most likely that the curves will shift rightward from  MC<sub>1</sub>, and ATC<sub>1</sub> to MC<sub>3</sub> and ATC<sub>3</sub>? A) A new tax of $0.03 per can is imposed on the producer. B) There is an increase in energy costs. C) A new supplier offers to supply aluminum to the firm at a lower price. D) Technology declines in the production of aluminum cans.
Refer to Exhibit 21-9. Let MC1 and ATC1 represent the initial cost curves of an aluminum can producer. In which of the following cases is it most likely that the curves will shift rightward from  MC1, and ATC1 to MC3 and ATC3?


A) A new tax of $0.03 per can is imposed on the producer.
B) There is an increase in energy costs.
C) A new supplier offers to supply aluminum to the firm at a lower price.
D) Technology declines in the production of aluminum cans.

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