Question: Which other answer is also likely to be correct? Be sure to explain why and to explain what is the economic implication of your answer?

Which other answer is also likely to be correct? Be sure to explain why and to explain what is the economic implication of your answer?

Which other answer is also likely to be correct? Be sure to

Extra Credit (up to 5 points) Here is a sample question from an actual Microeconomics textbook (not ours): If new, more advanced equipment reduces the amount of labor needed to produce an increased level of output, then a) The AVC curve will shift upward b) The MC curve will shift upward c) The AFC curve will shift upward d) The ATC curve will shift downward The authors of the book say that the correct answer is d, since an increase in productivity lowers costs. True, but I think their answer oversimplies a complex problem and that and another answer is also true. One point for the correct answer, and up to four points for your explanation, which should be thorough and include details or an example. Which other answer is also likely to be correct? Be sure to explain why and to explain what is the economic implication of your answer? Type your answer and explanation here

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