If Factor Prices Decrease

Multiple Choice

If factor prices decrease,

A) there will be a downward shift in the long- run average cost curve but not in the short- run average cost curve.
B) a firm will move down along both its long- run and short- run average cost curves.
C) both the long- run and short- run average cost curves will shift downward.
D) a firm will move down along its long- run average cost curve only.
E) there will be no change in the cost curves in the long run.