Refer to the information provided in Figure 10.2 below to answer the question(s) that follow. 
Figure 10.2 Refer to Figure 10.2. This firm's marginal cost curve has shifted from MC0 to MC1. A likely explanation for this is that
A. the price of a variable input decreased.
B. the demand for the firm's product decreased.
C. the productivity of a variable input declined.
D. the supply of a variable input decreased.
Answer: A
You might also like to view...
A person's consumption possibilities is defined by the budget line because
A) it marks the boundary between what is affordable and unaffordable. B) it represents the individual's preference for different combinations of goods. C) it marks the boundary between what can be produced and what is unattainable given the current state of technology and resources. D) all consumers must consume on their budget line.
Sam wins a Mega Millions jackpot worth $3 million. Which of the following is most likely true of Sam's consumption function? a. His consumption function will be flatter
b. His consumption function will be steeper. c. His consumption function will shift upward. d. His consumption function will shift downward.
A firm will find it profitable to hire workers up to the point at which their:
A. marginal resource cost equals their wage rate. B. wage rate equals product price. C. MP is equal to their MRP. D. marginal resource cost is equal to their MRP.
In a closed private economy, income is $50 billion and consumption is $40 billion. When income rises by 10 percent, consumption rises by 9 percent. The MPS over the relevant income range is:
A. 0.11 and the multiplier is 9.09 B. 0.28 and the multiplier is 3.57 C. 0.62 and the multiplier is 1.61 D. 0.72 and the multiplier is 3.57