When a firm's fixed cost rises, its total profit curve shifts
a. up at every output level.
b. down at every output level.
c. left at every profit level.
d. right at every profit level.
b
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Externalities between two firms can be "internalized" if: I. The two firms merge. II. Bargaining costs are zero. III. The externalities affect each firm equally. IV. Marginal costs for both firms are constant. Which statement(s) correctly complete(s) the sentence?
a. Only II. b. All except III. c. I and II, but not III and IV. d. I and IV, but not II and III
The ability of increasing quantity supplied in response to a higher price is identical across industries
a. True b. False
In the market for yen, an increase in the relative safety of U.S. investments tends to
A. decrease demand. B. increase excess demand. C. increase equilibrium price. D. cause no change in equilibrium price.
When voters have different opinions about an issue, the position that is most likely to be adopted is that of the:
A. Lobbyist B. Logroller C. Rent-seeker D. Median voter