Figure 85 Figure 8

question 220

Multiple Choice

Figure 8.5 Figure 8.5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry.
-Refer to Figure 8.5.If the firm's fixed cost increases by $1000 due to a new environmental regulation, what happens in the diagram above?

• A)All the cost curves shift upward.
• B)Only the average variable cost and average total cost curves shift upward; marginal cost is not affected.
• C)Only the average total cost curve shifts upward; the marginal cost and average variable cost curves are not affected.
• D)None of the curves shifts; only the fixed cost curve, which is not shown here, is affected.

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Definitions:

Preferences

Individual choices or inclinations towards certain options, ideas, or items over others based on personal taste or values.

Transference

A phenomenon in psychoanalysis where emotions or desires originally associated with one person, typically from early life, are unconsciously transferred onto another in the present.

Good Friend

A person who is reliable, trustworthy, and supportive, often playing a significant role in one's social and emotional well-being.

Class Project

A group or individual task assigned within a course that requires applying learned theories and concepts to practical scenarios.