Question

if the atc curve shift down, what will happen to the price and quantity?

Answer 1

Answer :- Average total cost (ATC) is obtained by dividing the total cost (TC) by the quantity (Q) of output produced.

Symbolically, ATC = TC / Q.

As the average total cost (ATC) curve shift to down, Price will decrease and Quantity will increase.

Output level (Quantity) increases with the decrease in average total cost (ATC) whereas the price of output decreases with the decrease in average total cost (ATC).

Conclusion :- Price will decrease and Quantity will increase