Figure 8-5

-Refer to Figure 8-5.Which of the following would most likely cause the average total cost curve of a firm producing steel bolts to shift from ATC₁ to ATC₂?

Question

Figure 8-5
 
-Refer to Figure 8-5.Which of the following would most likely cause the average total cost curve of a firm producing steel bolts to shift from ATC₁ to ATC₂?

Quizplus · Accepted Answer

An increase in the price of steel, which is a primary input in the production of steel bolts, would increase the firm's production costs, causing the average total cost curve to shift upwards from ATC₁ to ATC₂.

Figure 8-5 -Refer to Figure 8-5.Which of the Following Would Most Likely