An increase in fixed costs will lower a firm's
- A. total cost.
- B. output.
- C. prices.
- 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
- A. a parallel shift in the total cost curve.
- B. a parallel shift in the fixed cost curve.
- C. a parallel shift in the marginal cost curve.
- D. a shift in total cost by different amounts for different quantities.
1) d) An increase in fixed costs will lower a firm's profit. 2) d) Suppose that the... View the full answer