If the price of a variable input increases,then
A)the total cost curve will shift up.
B)the average total cost curve will shift down.
C)the marginal cost curve will shift down.
D)the fixed cost curve will shift up.

Question

Quizplus · Accepted Answer

If the price of a variable input increases, it will lead to an increase in the cost of production. This increase in cost will cause the total cost curve to shift upward because at any level of output, the firm will now have to incur a higher cost compared to before the increase in the input price.

If the Price of a Variable Input Increases,then