Asked by karamjeet singh on May 12, 2024

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Suppose a technological innovation shifts the marginal cost curve downward. Which one of the following cost curves does NOT shift?

A) Firm's short-run supply curve
B) Average total cost curve
C) Average variable cost curve
D) Average fixed cost curve

Technological Innovation

The development and application of new ideas, devices, or methods in technology which significantly improve goods, services, or processes.

Cost Curves

Graphical representations of how the cost of production varies with changes in the quantity of output produced, including average and marginal costs.

Average Fixed Cost

Fixed cost divided by the level of output.

  • Investigate the role of technological improvements and input price variations in shaping a firm's cost curves and optimal output.
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CB
Collin BaileyMay 17, 2024
Final Answer :
D
Explanation :
The technological innovation that shifts the marginal cost curve downward affects variable costs and has no impact on fixed costs, so the average fixed cost curve remains the same.