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When a Firm Increases the Amount of Capital It Uses

Question 17

Multiple Choice

When a firm increases the amount of capital it uses, the


A) average total cost curve shifts down.
B) average total cost curve shifts up.
C) average total cost curve twists, increasing ATC at low output levels and decreasing ATC at high output levels.
D) average variable cost curve shifts up.
E) average fixed cost decreases.

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