Question 101 point AVERAGEA COST AVERAGEB COST AC AC AC AC 2

Question 10(1 point) AVERAGEA COST AVERAGEB COST AC AC AC AC 2 QUANTITY QUANTI AVERAGE COST AVERAGE COST AC AC AC, Ac QUANTITY OUANTITY

Solution

10. C

Increase in wage means increase in the firm\'s expenditure on workers so TC of firm increases which leads to increase in ATC and shifts the curve upwards.

11. A

This is becuse introduction of new technology decreases the ATC of firm which shifts ATC curve downwards.