In Perfect Competition, an Increase in Fixed Costs Will Eventually

question 27

Multiple Choice

In perfect competition, an increase in fixed costs will eventually cause all except

• A)reduction in industry output.
• B)reduction in a firm's output.
• C)reduction in the number of firms.
• D)decrease in industry supply.

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Definitions:

Remedy

Legal means to enforce a right or redress a wrong, which can involve monetary compensation, restitution, or other corrective measures.

Destroyed

Completely ruined or spoiled, often beyond repair or recovery.

Interference With Economic Relations

An intentional and wrongful act by one party that causes economic harm to another by disrupting their business relationships or contracts.

Breach Of Contract

A breach in not adhering to any part of a contract, whether it is in writing or oral form, without a sanctioned legal excuse.