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:

Local Community

A group of people living in the same place or having a particular characteristic in common, often within a smaller area that facilitates face-to-face interaction.

Blended Family

Two adults and their children. Because of divorce, separation, death, or adoption, the children are the offspring of other biological parents or of just one of the adults raising them.

Natural Family

An alternative term often used to refer to a nuclear family, emphasizing biological relationships within the family unit.

Extended Family

Relatives such as aunts, uncles, cousins, or grandparents and/or unrelated persons who are part of a family unit.