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 ATC ₁ to ATC ₂?

Question

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 ATC ₁ to ATC ₂?

Quizplus · Accepted Answer

An increase in the price of the plastic used to produce the chairs would increase the firm's costs and shift the ATC curve upward from S1U1B11 to S1U1B12. None of the other options would directly impact the firm's production costs and thus would not cause a shift in the ATC curve.

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