The marginal cost curve and average total cost curve of General Electric will shift downward if the firm realizes technological advances, a reduction in resource prices, or a decrease in taxes.

Question

Quizplus · Accepted Answer

Technological advances can increase efficiency, reducing the cost of production per unit. Similarly, a reduction in resource prices decreases the cost of inputs, and a decrease in taxes reduces the firm's expenses, all of which contribute to lowering the marginal and average total cost curves.

The Marginal Cost Curve and Average Total Cost Curve of General