Refer to the Diagram, Which Relates to Firm A

Multiple Choice

Refer to the diagram, which relates to Firm A. Which of the following would shift A's average total cost curve from ATC₁ to ATC₂?

A) replacement of old equipment with new, more productive equipment embodying technological advance
B) a decrease in the incomes of A's customers
C) a move along A's total product curve (not shown)
D) the increase in the price of one of the major inputs used to produce A's product