13. Dell’s marginal cost curve and average total cost curve of producing a computer would shift upward if:
A.) The firm realizes technological improvements
B.) Workers become less productive
C.) Materials prices decline for the firm
D.) Business taxes decrease for the firm.
E.) None of the above
To determine the correct answer, we need to understand how each of these factors would affect Dell's marginal cost curve and average total cost curve.
A) Technological Improvements:
If Dell realizes technological improvements, it would likely lower their production costs. This would result in a downward shift of both the marginal cost curve and average total cost curve. Therefore, this option is incorrect.
B) Workers Become Less Productive:
If workers become less productive, it means it takes more time and effort to produce each unit, increasing the cost of production. As a result, the marginal cost curve and average total cost curve would shift upward. Therefore, this option is a possible correct answer.
C) Materials Prices Decline for the Firm:
If materials prices decline for Dell, it would lower their production costs. This would also result in a downward shift of both the marginal cost curve and average total cost curve. Therefore, this option is incorrect.
D) Business Taxes Decrease for the Firm:
If business taxes decrease for Dell, it would lower their production costs. However, taxes are not directly represented in the production function itself. So, reducing business taxes would not result in a shift in the marginal cost curve or average total cost curve. Therefore, this option is incorrect.
E) None of the Above:
Given the explanations above, the correct answer should be one of the options A, B, or C since they directly impact production costs. However, as we have determined that option A is incorrect, and option C leads to a downward shift, the correct answer is option B: Workers become less productive.
Therefore, if workers become less productive, Dell's marginal cost curve and average total cost curve of producing a computer would shift upward.