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.

---

Definitions:

Nannie Helen Burroughs

An African American educator, orator, religious leader, and businesswoman, known for her activism for women's rights and the education of black children, founding the National Training School for Women and Girls in Washington, D.C., in 1909.

War Department

Former name for what is now the Department of Defense in the United States, responsible for military affairs until it was restructured in 1947.

Lynching

A form of violence in which a mob, without legal authority, kills someone, often by hanging, for an alleged offense with or without a legal trial.

American Federation

An umbrella organization for U.S. unions, representing overall labor interests.