When a Firm's Fixed Cost Increases

question 219

Multiple Choice

When a firm's fixed cost increases,

• A)the firm needs to adjust its price and quantity to restore the profit maximum.
• B)it would not need to change output.
• C)marginal cost increases.
• D)variable cost increases.

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Definitions:

Volcanic Center

A location on the Earth's surface that has been the site of multiple volcanic eruptions and activities over a long period.

Energy Resource

Natural resources that can be converted into energy forms usable by humans, such as oil, coal, solar, and wind.

Salt Dome

A geological formation created when layers of salt are pushed upward by the weight of overlying rock, sometimes trapping oil and gas.

Fault Zone

A region of numerous, closely spaced faults where the Earth's crust has fractured and moved.