Asked by Carrie Steel on Jun 24, 2024
Verified
If a more efficient technology was discovered by a firm, there would be
A) an upward shift in the AVC curve.
B) an upward shift in the AFC curve.
C) a downward shift in the AFC curve.
D) a downward shift in the MC curve.
AVC Curve
A graphical depiction of the average variable costs incurred by a firm in the short run, illustrating how costs vary with output levels.
AFC Curve
A graph representing Average Fixed Costs, which shows how fixed costs per unit of output decrease as production increases.
- Explain the significance of technological advancements on production costs.
Verified Answer
AD
Alexis DanzeyJun 26, 2024
Final Answer :
D
Explanation :
A more efficient technology would lower the marginal cost (MC) of production, leading to a downward shift in the MC curve.
Learning Objectives
- Explain the significance of technological advancements on production costs.