When Total Fixed Costs Increase

question 57

Multiple Choice

When total fixed costs increase,

• A)the profit-maximizing level of output falls.
• B)the firm may be forced to shut down if total fixed costs get too high.
• C)economic profit decreases.
• D)both a and b
• E)both b and c

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Definitions:

Monocytes

A type of white blood cell that plays a critical role in the immune system by killing pathogens, removing dead cells, and stimulating the action of other immune cells.

Sympathetic System

A part of the autonomic nervous system that activates what is often termed the fight or flight response, preparing the body for action.

Parasympathetic System

Part of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles.