Buford Bus Manufacturing installs a new assembly line.As a result,the output per worker increases.The marginal cost of output at Buford:
A)will increase (the MC curve will shift up).
B)will decrease (the MC curve will shift down).
C)will be unchanged.
D)is at its maximum.

Question

Quizplus · Accepted Answer

The marginal cost of output decreases when output per worker increases, as it means each additional unit of output requires less input cost, shifting the MC curve down.

Buford Bus Manufacturing Installs a New Assembly Line