If a technological change reduced the amount of the variable input needed by a firm to produce a unit of output:
A) its AVC curve would shift down.
B) its ATC curve would shift down.
C) its MC curve would shift down.
D) All of the above would occur.

Question

Quizplus · Accepted Answer

A technological change that reduces the amount of variable input needed decreases costs, shifting the AVC, ATC, and MC curves down.

If a Technological Change Reduced the Amount of the Variable