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:

German Product Liability

Legal regulations in Germany that hold manufacturers, distributors, or sellers liable for selling defective products causing damage or injury.

Feasible Way

A practical and possible method or approach to achieve a specific goal or task.

Safer Product

A product designed with features to minimize risk and enhance safety for users.

Defective Product

An item that fails to meet acceptable standards or poses a risk to consumers due to flaws in design, manufacture, or labeling.