The average variable cost curve will shift upward if:
a) there is a technological advance.
b) the price of the variable input decreases.
c) the price of the variable input increases.
d) there is an increase in fixed cost.
e) the price of output increases.
Ans: c) the price of the variable input increases.
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Which of the following statements about the nominal and the real wage rates is correct?
A) The nominal wage rate equals the real wage rate divided by the CPI and then multiplied by 100. B) The nominal wage rate is measured in the dollars of a base year. C) The real wage rate is measured in current year dollars. D) The real wage rate indicates how many goods and services can be purchased with an hour's labor. E) The real wage rate equals the nominal wage rate multiplied by the CPI then divided by 100.
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