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:

Common Goals

Objectives shared by a group of people, aiming to achieve a mutual outcome or interest.

Income Going

The flow of earnings or revenue generated from economic activities or investments over a given period.

Labor Force

The total number of people available for work, including both the employed and those actively seeking employment.

Inflation

A general increase in prices and fall in the purchasing value of money.