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An increase in fixed costs will lower a firm's A. total cost. output. prices. profit.

An increase in fixed costs will lower a firm's

  1. A. total cost.
  2. B. output.
  3. C. prices.
  4. D. profit.


Suppose that the price of labor, the only variable input needed to produce cotton, increases from $100 day to $120 day. The effect on costs will be

  1. A. a parallel shift in the total cost curve.
  2. B. a parallel shift in the fixed cost curve.
  3. C. a parallel shift in the marginal cost curve.
  4. D. a shift in total cost by different amounts for different quantities.

Top Answer

1) d) An increase in fixed costs will lower a firm's profit. 2) d) Suppose that the... View the full answer

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D. profit. D. a shift in total... View the full answer

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