-The downward shift of the average total cost curve from ATC₁ to ATC₂ implies that:

Question

Quizplus · Accepted Answer

A downward shift in the average total cost curve suggests that the firm is able to produce at a lower cost for any given level of output. This typically implies that the firm has become more efficient, possibly due to technological improvements, economies of scale, or other factors that reduce costs. As a result, the economic capacity, which is the output level at which average total costs are minimized, would be at a higher output level because the firm can now produce more at a lower cost.

-The Downward Shift of the Average Total Cost Curve from ATC1

-The Downward Shift of the Average Total Cost Curve from ATC₁