If total fixed cost increases, which of the following will NOT change?
A) total cost
B) average fixed cost
C) marginal cost
D) average total cost
E) ALL costs increase when total fixed cost increases.
C
You might also like to view...
Which of the following is NOT a monetary policy tool?
A) last resort loans B) open market operations C) required reserve ratio D) federal funds rate
What type of policies did Adam Smith attack in his book, An Inquiry into the Nature and Causes of the Wealth of Nations?
What will be an ideal response?
Barriers to entry reduce the likelihood that price-setter firms will see their positive economic profits competed away over time
Indicate whether the statement is true or false
Which of the following is true of a competitive price-searcher firm when the market is in a long-run equilibrium?
a. MR < MC < price b. MR < MC = price c. MR = MC < price d. MR = MC = price