If the price of labor or some other variable resource decreased, the:
A. AVC curve would shift upward
B. AFC curve would shift downward
C. AFC curve would shift upward
D. MC curve would shift downward
D. MC curve would shift downward
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Which of the following statements is correct? I. When economists derive the aggregate demand curve, they are looking at the effect of the price level on one commodity only. II. Any non-price-level change that increases aggregate spending on domestic goods shifts the AD curve to the right.
A) I only B) II only C) Both I and II D) Neither I nor II
In a "first-best" world
A. free trade benefits only the consumers of the importing country. B. free trade benefits only the exporting nations. C. each economy is self-sufficient enough not to indulge in free trade. D. free trade is economically efficient.