CFA Practice Question

CFA Practice Question

A downward shift in a company's average cost curve is least likely to result from ______.
A. a decrease in taxes
B. the use of improved technology
C. a decrease in historical costs
Explanation: Factors that would result in a downward shift in a company's average total cost curve include a decrease in taxes, a decrease in the price of resources, and technological improvements.

User Contributed Comments 15

User Comment
SuperKnight gee.. i gotta read the question correctly. "least likely"
manula you and me both ><
boddunah me tooooooooooooooooooooo.
anaraguin same here!!!!!! grrrr
jpducros What does "a decrease in historical costs mean exactly" ?
Windknot I'm not sure what a "decrease in historical costs" means either but it sounds like its some kind of retrospective accounting adjustment. While unsure of the exact definition it definitely didn't sound like an economics term.
Gleeder I've noticed this trend - if a term from another section shows up in the current section its likely false (or the correct answer for "least likely")
madelinee LEAST LIKELY
grrrr
miguel123 grrrr
cbracho54 this least likely stuff is not nice from the CFA institute..
HolzGe1 got me too, hooray :)
Praveshen I'm a victim as well!!!
sunday128 Least likely... I cry every time...
mlaique moi aussi
Mjw1095 me 2
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