As Fixed Costs Increase, the Number of Firms in the Industry

question 8

True/False

As fixed costs increase, the number of firms in the industry decreases.

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Definitions:

Tax

Mandatory financial contributions imposed by a government on individuals, corporations, or goods to fund public expenditures.

Tax Burden

The measure of the total amount of taxes imposed by government on individuals, corporations, goods, and services, affecting the income and purchasing power of taxpayers.

Buyer

An individual or entity that purchases goods or services for personal use or for the purpose of resale.