Economics 9708 · AS & A Level · 7.5

7.5 — practice question

The diagram illustrates a firm’s cost and revenue curves. The firm launches an advertising campaign worth $100 million that proves successful. What effect will this have on its cost and revenue curves?

  • AMR curve: shifts to right AR curve: shifts to right MC curve: shifts up AC curve: unchanged
  • BMR curve: shifts to right AR curve: shifts to right MC curve: unchanged AC curve: shifts up
  • CMR curve: unchanged AR curve: unchanged MC curve: shifts up AC curve: unchanged
  • DMR curve: unchanged AR curve: unchanged MC curve: unchanged AC curve: shifts up

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