Other Things Equal, If the Fixed Costs of a Firm

question 99

Multiple Choice

Other things equal, if the fixed costs of a firm were to increase by $100,000 per year, which of the following would happen?

• A)Marginal costs and average variable costs would both rise.
• B)Average fixed costs and average variable costs would rise.
• C)Average fixed costs and average total costs would rise.
• D)Average fixed costs would rise, but marginal costs would fall.

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Definitions:

Drug Abuse

The improper or unsafe use of drugs, including prescription medications, over-the-counter drugs, alcohol, and illicit substances, often leading to addiction and other harmful effects.

Unintentional Use

The misuse of substances or products without the purpose or awareness of causing harm or illegal activity.

Prescription Drugs

Medicines that can only be obtained with a written order from a healthcare professional, used for diagnosing, treating, or preventing diseases.

Intoxicating Effects

The physiological and psychological effects caused by consuming substances that impair cognitive and physical functions.