Question: In the short run, a firm employs labor and capital to produce gadgets. If the annual price of capital increases, what will happen to the

In the short run, a firm employs labor and capital to produce gadgets.

If the annual price of capital increases, what will happen to the shortrun cost curves?

(A) The marginal cost and average variable cost curves will shift upward.

(B) The average fixed cost and average total cost curves will shift upward.

(C) The marginal cost and average fixed cost curves will shift upward.

(D) The marginal cost, average fixed cost, average variable cost, and average total cost curves will all shift upward.
(E) Only the average fixed cost curve will shift upward.

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