Suppose Fixed Costs Rise to $200

question 124

Multiple Choice

Suppose fixed costs rise to $200.What will happen in the market?

• A)The firm will decrease its output and lower its price.
• B)The firm will increase the price.
• C)The firm will shut down immediately.
• D)The firm continues to produce the same output and charge the same price.

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Definitions:

Early Adopters

Individuals or organizations that quickly embrace new technologies or innovations before the majority of the population, often influencing later adoption by others.

Boutiques

Small, specialized shops or businesses that offer unique, often high-end or niche products.

Dynamically Continuous Innovation

A type of innovation that has a moderate impact on existing consumer habits and behavior, requiring some learning or change.

Discontinuous Innovation

A type of innovation that creates a significant change in the way a market operates, often by introducing a new product or service that creates a new market.