Buford Bus Manufacturing installs a new assembly line.As a result, the output produced 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 increase in output per worker due to the new assembly line suggests improved productivity, which typically leads to a decrease in marginal cost as each additional unit of output requires less input cost.

Buford Bus Manufacturing Installs a New Assembly Line