Refer to the diagram, which relates to Firm A. Which of the following would shift A's average total cost curve from ATC₁ to ATC₂?
A)replacement of old equipment with new, more productive equipment embodying technological advance
B)a decrease in the incomes of A's customers
C)a move along A's total product curve (not shown)
D)the increase in the price of one of the major inputs used to produce A's product

Question

Refer to the diagram, which relates to Firm A. Which of the following would shift A's average total cost curve from ATC₁ to ATC₂?
A)replacement of old equipment with new, more productive equipment embodying technological advance 
B)a decrease in the incomes of A's customers 
C)a move along A's total product curve (not shown) 
D)the increase in the price of one of the major inputs used to produce A's product

Quizplus · Accepted Answer

The Answer of  Refer to the diagram, which relates to Firm A. Which of the following would shift A's average total cost curve from ATC₁ to ATC₂?
A)replacement of old equipment with new, more productive equipment embodying technological advance 
B)a decrease in the incomes of A's customers 
C)a move along A's total product curve (not shown) 
D)the increase in the price of one of the major inputs used to produce A's product

Refer to the Diagram, Which Relates to Firm A