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 ATC₁ to ATC₂?

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 ATC₁ to ATC₂?

Quizplus · Accepted Answer

An increase in the price of the plastic used to produce the chairs would increase the firm's variable costs, thus increasing the average total cost curve from ATC1 to ATC2. Option A and B would not shift the average total cost curve as they do not affect the cost of production. Option D would affect the firm's profits but not the cost of production.

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