When a firm’s fixed cost increases,
A. the firm needs to adjust its price and quantity to restore the profit maximum.
B. it would not need to change output.
C. marginal cost increases.
D. variable cost increases.
Answer: B
You might also like to view...
Which of the following is characteristics is common to both monopoly and monopolistic competition?
A) Ease of entry into the industry. B) Firms are price setters. C) A relatively large number of sellers. D) Long-run economic profit equals 0.
Often the best way for a firm to convey information to consumers about the quality of a product is to spend money on creating well-known brand names and the provision of guarantees
a. True b. False Indicate whether the statement is true or false
A characteristic of a competitive labor market is
A. an equilibrium wage and quantity supplied. B. an overall reduction in employment due to firms having market power. C. high levels of unemployment. D. labor supply changing as the wage changes.
Which of the following would be most likely to improve the standard of living of the residents of a less-developed country?
A. the development of strong labor unions B. a sharp increase in the legal minimum wage C. an increase in expenditures on education and capital investment D. rapid growth rate of the money supply