InterviewSolution
Saved Bookmarks
InterviewSolution
| 1. |
Which is NOT a cause of shift in cost curves of a firm? |
|
Answer» PRICE of product Price of product is not a cause of shift in cost curves of a firm. Cost curves shift in RESPONSE to changes in two factors: If a TECHNOLOGICAL change results in the firm using more capital, the average fixed cost curve SHIFTS upward and at low levels of output, the average total cost curve may shift upward. At LARGE output levels, average total cost decreases. |
|