The average variable cost curve shifts downward if
A) there is a decrease in fixed costs.
B) there is a technological advance.
C) the cost of a variable input increases.
D) the price of output decreases.

Question

Quizplus · Accepted Answer

A technological advance can lead to more efficient production, reducing the cost of variable inputs and thus shifting the average variable cost curve downward.

The Average Variable Cost Curve Shifts Downward If