Shifts in Short-Run Cost Curves
A firm undertakes a training program that increases worker productivity by 15% but also increases wages by 5%. The program has a fixed cost of $10,000. In the short run, which of the following describes the impact on the firm’s cost curves?
A
All cost curves shift downward due to higher productivity
B
All cost curves shift upward due to higher wages
C
AVC shifts down, AFC shifts up, and ATC may shift either way
D
Only MC shifts while other curves remain unchanged
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