what causes shift of average total cost curve
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Cost curves shift in response to changes in two factors: ... An increase in the price of a factor of production increases costs and shifts the cost curves upward. An increase in fixed cost does not affect the variable cost or marginal cost curves (TVC, AVC, and MC curves).
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If a technological change results in the firm using more capital, the average fixed cost curve shifts upward and at low levels of output, the average total cost curve may shift upward. At large output levels, average total cost decreases.
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