If a Profit-Maximizing Firm's Fixed Cost of Producing Widgets Falls

question 153

Multiple Choice

If a profit-maximizing firm's fixed cost of producing widgets falls,

• A)its total cost curve is unaffected.
• B)its marginal cost curve shifts down.
• C)the firm will produce more widgets.
• D)the firm's average profit per widget produced rises.

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Definitions:

Population Parameter

A value that accurately represents a particular characteristic of an entire population.

Sampling Distribution

The probability distribution of a given statistic based on a large number of samples drawn from a specific population.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values from the mean, indicating how spread out the data points are.

Standard Deviation

A determination of the magnitude of variation or dispersion among values in a set.