Asked by Carrie Steel on Jun 24, 2024

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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.
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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.