If a competitive firm is operating in short run equilibrium and then its fixed costs fall by 40 percent, it should:
a. use more labor and less capital in current production.
b. not change its output

c. increase its output.
d. decrease its output.


b

Economics

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A) supply; right; increasing B) supply; left; increasing C) demand; right; decreasing D) demand; left; decreasing

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Smartphones are examples of negative externalities

a. True b. False Indicate whether the statement is true or false

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The more elastic the supply of a product, the more the actual burden of a tax on the product will:

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