Suppose there is a decrease in the demand for high-definition televisions.   What effect might this change have on the short-run average total cost curve for this product? _____   a) A decrease. When demand decreases, the short-run average total cost falls.   b) An increase. When demand decreases, the short-run average total cost increases.   c) No change. Demand determines the final price but not the costs for the product.

Principles of Economics, 7th Edition (MindTap Course List)
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ISBN:9781285165875
Author:N. Gregory Mankiw
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Chapter13: The Cost Of Production
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5. Study Questions and Problems #5

Suppose there is a decrease in the demand for high-definition televisions.
 
What effect might this change have on the short-run average total cost curve for this product? _____
 
a) A decrease. When demand decreases, the short-run average total cost falls.
 
b) An increase. When demand decreases, the short-run average total cost increases.
 
c) No change. Demand determines the final price but not the costs for the product.
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