If a Firm's Fixed Costs Increase, Then Profits Drop but Its

question 40

True/False

If a firm's fixed costs increase, then profits drop but its output should not change.

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Definitions:

Fact

A statement that can be proven true or false based on evidence or reality.

Research Observations

The process of systematically watching, recording, and analyzing behaviors or phenomena in a study to gather data.

Hypothesis

An “if-then” statement that follows logically from a theory and specifies how certain variables should be related to each other if the theory is correct.

Stereotype Threat

A situational predicament in which individuals are at risk of confirming negative stereotypes about their social group.