Other things equal, if the fixed costs of a firm were to increase by $100,000 per year, which of the following would happen?
A. Marginal costs and average variable costs would both rise.
B. Average fixed costs and average variable costs would rise.
C. Average fixed costs would rise, but marginal costs would fall.
D. Average fixed costs and average total costs would rise.
Answer: D
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a. interest rates decline b. information about notorious firms is speedily disseminated c. price premiums for allegedly high quality increase d. sellers invest in non-transferable reputation e. none of the above
As a monopoly increases production, the price of all units sold falls, but marginal revenue increases
a. True b. False Indicate whether the statement is true or false
When the dollar depreciates, this shifts the AD curve rightward and the SRAS curve leftward, which will always lead to a higher Real GDP
Indicate whether the statement is true or false
If a loan has a probability of not being paid back, the interest rate will:
A. be the real interest rate. B. likely include a risk premium. C. lower than the market interest rate. D. insufficient to compensate bondholders.