An increase in the cost of a fixed input shifts the ____ upward. i. average total...
An increase in the cost of a fixed input shifts the ____ upward.
i. average total cost curve
ii. marginal cost curve
A.Only i is correct.
B.Only ii is correct.
C.Both i and ii are correct.
D.Neither i nor ii is correct.
Homework Answers
Answer: (a)
The average total cost is affected by the fixed input but marginal cost is not affected by the fixed cost.
Marginal cost is affected by the variable inputs only.
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An increase in the cost of a fixed input shifts the ____
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