Ask Question
BusinessBusiness
23 March, 20:03

The prices of raw materials increase in a purely competitive industry. This change will result in a (n) A. decrease (downward shift) in the average total cost curve for firms in the industry. B. decrease (downward shift) in the marginal revenue curve for firms in the industry. C. increase (upward shift) in the marginal cost curve for firms in the industry. D. increase (rightward shift) in the short-run supply curve for firms in the industry.

+3
Answers (1)
  1. 23 March, 22:46
    0
    The answer is C. increase (upward shift) in the marginal cost curve for firms in the industry

    Explanation:

    Marginal cost is the the cost incurred by producing additional unit of a product. Marginal costs are usually variable cost. When marginal cost has been incurred, there will be a change in the total cost.

    When the price of raw material (variable cost, input) increases, this increase the cost of production and there will also be an increase in the marginal cost curve for firms in the industry.

    Because it is an increase, the curve shifts upward
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The prices of raw materials increase in a purely competitive industry. This change will result in a (n) A. decrease (downward shift) in the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which of these makes this a true statement? When determining the appropriate weights used in calculating a WACC, it should reflect: A.) The relative sizes of the total book capitalizations for each kind of security that the firm issues. B.
Answers (1)
Which of the following terms refers to a cloud computing feature that allows for automatic allocation of computing resources in proportion with the demand? a. Rapid elasticityb. Measured servicec. On-demand self-serviced. Resource pooling
Answers (1)
William decided to deposit his money in a basic savings account instead of a CD. At the end of one year, his savings account had $1,100. If he had put his money in the CD, he would have had $1,400 at the end of the year.
Answers (1)
Which of the following is involved in a situation in which a person refuses to perform according to a contract unless the other person either signs another contract with the one making the threat or pays that person a higher price than was specified
Answers (1)
Fey Enterprises recorded a restructuring charge of $16.2 million during fiscal 2016 related entirely to the closing of its division located in Denver, Colorado.
Answers (1)
New Questions in Business
An advertiser enables target cost-per-acquisition (cpa) bidding and notices that conversions decrease. what might cause this?
Answers (1)
A trigger strategy is a strategy that: A. is not relevant to oligopolies. B. determines when to enter an industry. C. depends on an opponent's past decisions. D. tells a business to leave the industry because the price is below the AVC.
Answers (1)
What is the effect on the supply curve for skateboards if the government implements a tax on the manufacturing process?
Answers (1)
Cost of goods sold is: an asset account. a revenue account. an expense account. a permanent equity account.
Answers (1)
Markup represents an amount needed to cover operating expenses. a. True b. False
Answers (1)
Home » Business » The prices of raw materials increase in a purely competitive industry. This change will result in a (n) A. decrease (downward shift) in the average total cost curve for firms in the industry. B.
Sign Up Forgot Password?