When total fixed costs increase,
A. the firm may be forced to shut down if total fixed costs get too high.
B. the profit-maximizing level of output falls.
C. economic profit decreases.
D. both a and b
E. both b and c
Answer: C
You might also like to view...
The most important source of funds for nonfinancial businesses is ________
A) financial intermediaries B) insurance companies C) hedge funds D) state and local governments
The Dodd-Frank bill is new financial regulation
Indicate whether the statement is true or false
The European Union is an example of regional integration.
a. true b. false
U.S. exports are included in aggregate demand because the exports contribute to the total ______.
a. spending on goods and services by U.S. consumers b. U.S. demand for foreign goods and services c. U.S. sales of goods and services by foreign producers d. demand for U.S. goods and services