An Increase in the Fixed Costs of a Monopoly Firm

question 76

Multiple Choice

An increase in the fixed costs of a monopoly firm would _______ price and _______ quantity in the short run.

• A) increase; decrease
• B) increase; increase
• C) not change; not change
• D) do none of the above

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Definitions:

Thirty Years War

A protracted conflict that took place between 1618 and 1648, primarily within the Holy Roman Empire, involving most of the major European powers and marked by widespread destruction and high civilian casualties.

Joint Stock Company

A business entity where different stocks can be bought and owned by shareholders, allowing for the pooling of capital and sharing of profits or losses.

Narragansett Indians

A Native American tribe originally from the Rhode Island area, known for their rich culture, history of resistance and adaptation during European colonization, and ongoing efforts to preserve their heritage.

Privateering

The practice of private individuals or ships authorized by a government engaging in maritime warfare under a commission of war.