Suppose Ben owns a small company that makes kites. The market for kites is perfectly competitive, and kites sell for $25 each. Ben's total production costs vary depending on the number of kites he makes each day, as shown in the accompanying table.Number of kites Per DayTotal Cost Per Day ($)0100111021263148417252006235 If Ben's fixed cost rises, then in the short run, his:
A. profit-maximizing level of output will not change.
B. profit-maximizing level of output will fall.
C. economic profit will not change.
D. profit-maximizing level of output will rise.
Answer: A
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