A firm in competitive price-taker market is maximizing profit at Q = 3,000 . Then its fixed cost increases. The profit-maximizing output is now
a. greater than 3,000 and profit decreases
b. less than 3,000 and profit decreases
c. greater than 3,000 and profit is unchanged
d. equal to 3,000 and profit decreases
e. equal to 3,000 and profit increases
D
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Which of the following constitutes wealth?
A) A baseball card collection B) A 2014 Ford Focus C) An Italian-made cello D) Money deposited in a savings account E) All of the above, as long as people value all of the goods listed above
The unregulated, single-price monopolist illustrated in the figure above makes an economic profit of
A) zero. B) $8.00 per day. C) $10.00 per day. D) $40.00 per day.
Which of the following pairs of goods are substitutes?
A) Baseball bats and baseballs B) Hot dogs and mustard C) Computer hardware and software D) Gasoline and motor oil E) Owner-occupied housing and rental housing
When the overall price level in an economy increases, the interest rate in that economy tends to increase as well. This increase in the interest rate makes investing in domestic assets look more attractive than investing in assets in other countries, so the demand for foreign assets decreases. This is called the _____
a. interest rate effect b. exchange rate effect c. wealth effect d. accelerator effect