Which of the following shifts the ATC curve upward at the XYZ Co.?
A) an increase in the hourly wage that XYZ pays its workers
B) a decrease in the hourly wage that XYZ pays its workers
C) an increase in the fixed amount of liability insurance premiums that XYZ pays for its business
D) Both answers A and C are correct.

Question

Quizplus · Accepted Answer

An increase in variable costs (like wages) and an increase in fixed costs (like insurance premiums) both raise the average total cost (ATC) curve.

Which of the Following Shifts the ATC Curve Upward at the XYZ