When a Firm's Fixed Cost Rises, Its Total Profit Curve

question 7

Multiple Choice

When a firm's fixed cost rises, its total profit curve shifts

• A)up at every output level.
• B)down at every output level.
• C)left at every profit level.
• D)right at every profit level.

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Definitions:

GST and PST

Taxes applied to the sale of goods and services; GST is a federal tax in Canada, while PST is a provincial sales tax.

Sold

The act of exchanging a product or service for money or other consideration.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning weights to each number.

Shares Outstanding

The total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.