Figure 85 Figure 8

question 240

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.The figure shows the cost structure of a firm in a perfectly competitive market.If the firm's fixed cost increases by $1000 due to a new environmental regulation, what happens to its profit-maximising output level?

• A)It increases.
• B)It decreases.
• C)It remains the same.
• D)It could increase, decrease or remain constant, depending on whether the firm is able to cut costs somewhere else.

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Definitions:

Interview Process

A structured interaction between a job applicant and an employer aimed at assessing the applicant's suitability for a position.

Warm-up

Activities or exercises performed before the main activity to prepare physically or mentally, often used in sports or public speaking.

Confident

Feeling or showing certainty about one's abilities, qualities, or ideas.

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Conforming to, permitted by, or recognized by law or rules.