Suppose Chris Is a Potter Who Makes Mugs If Chris's Fixed Costs Decrease, Then in the Short Run

question 137

Multiple Choice

Suppose Chris is a potter who makes mugs. His total costs depend on the number of mugs he makes each day, as shown in the accompanying table. $$\begin{array} { | c | c | } \hline \text { Number d Mugs Per Day } & \text { Tatal Cast Per Day } \\\hline 0 & \$ 10 \\\hline 1 & \$ 14 \\\hline 2 & \$ 19 \\\hline 3 & \$ 25 \\\hline 4 & \$ 32 \\\hline 5 & \$ 40 \\\hline 6 & \$ 49 \\\hline\end{array}$$  
If Chris's fixed costs decrease, then in the short run, his profit-maximizing level of output will:

• A)not change.
• B)increase.
• C)decrease.
• D)only increase if he can earn a positive profit.

---

Definitions:

Utility Poles

Structures used by public utilities to support wires and equipment necessary for the delivery of electricity, telephone service, and similar utilities.

Free Wifi Network

A wireless network that provides internet access to the public at no cost, often found in public spaces, businesses, or municipalities.

Environmental Justice

The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.

Food Justice

The movement seeking equity in access to healthy, nutritious food for all individuals, regardless of socio-economic status.