Q156
Which is NOT a cause of shift in cost curves of a firm?
A.
Excise tax
B.
Prices of inputs
C.
Increase in productivity
D.
Price of product
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Price of product is not a cause of shift in cost curves of a firm. Cost curves shift in response to changes in two factors: If a technological change results in the firm using more capital, the average fixed cost curve shifts upward and at low levels of output, the average total cost curve may shift upward. At large output levels, average total cost decreases.