How Would a $10 Increase in an Avoidable Per-Unit Fixed

question 71

Multiple Choice

How would a $10 increase in an avoidable per-unit fixed cost effect a price-taking firm's supply curve?

• A) MC would increase by $10, and AC would not change.
• B) AC would increase by $10, and MC would not change.
• C) MC and AC would both decrease by $10.
• D) MC and AC would both increase by $10.

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Definitions:

Internal Fertilization

The process by which sperm fertilizes an egg inside the body of an organism, common in terrestrial animals.

External Fertilization

The process in which gametes meet outside the body, typically when females release eggs and males release sperm into the surrounding water; occurs in most aquatic invertebrates, bony fishes, and amphibians. Compare with internal fertilization.

Protective Environment

A setting or condition designed to prevent harm or damage, typically used in the context of safeguarding human health or ecosystems.

Mitochondria

Organelles in eukaryotic cells that produce energy through cellular respiration.