Ford Motor Co. will hire​ 2,000 new workers and spend​ $1.1 billion to retool and refurbish its Kansas City plant.
​Source: Automotive​ News, May​ 2, 2013
Retooling and refurbishing the Kansas City plan will increase​ Ford's ______.
Expanding production and increasing output will increase​ Ford's ______.
A. total​ cost; total fixed cost
B. marginal​ cost; total fixed cost
C. total fixed​ cost; total fixed cost
D. total variable​ cost; total fixed cost
E. total fixed​ cost; total variable cost
When Ford retools and refurbishes the Kansas City plant and increases​ output, ______.
A. its LRAC curve shifts upward
B. it moves to the ATC curve associated with the larger plant and moves leftward along its LRAC curve
C. it moves to the LRAC curve associated with the larger plant
D. it moves to the ATC curve associated with the larger plant and moves rightward along its LRAC curve
E. its LRAC curve shifts downward