Greg’s Restaurant specializes in cheeseburger and produces about 2,000 burgers daily. Greg’s rent went up by 15 percent over last year. This will result in
A. a shift up of Greg’s marginal cost curve, but no other curves will shift up.
B. a shift up of both Greg’s marginal cost and average total cost.
C. a shift up of the marginal cost, average variable cost, and average total cost curve.
D. a shift up of only Greg’s average total cost curve.
Answer: D
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