Al's donuts produces about 600 dozen doughnuts daily. if flour prices increase 20 percent
a. marginal cost, average total cost, the average variable cost, and average fixed cost will shift up.
b. only marginal cost and the average total cost will shift up.
c. only marginal costs will shift up.
d. marginal cost, the average variable cost, and the average total cost will shift up.

(D) marginal cost, the average variable cost, and the average total cost will shift up.

Explanation:

Given the nature of business of AI's Donuts, flour prices is part of the variable cost of the business as it will change will any change in the output of the firm.

An increase in flour prices, a variable cost, will have the following effect on the following costs.

Therefore, option (D) is correct as marginal cost, the average variable cost, and the average total cost will shift up.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer; false pretense;