A Firm Enters into a Consent Decree to Avoid an Even

question 125

Multiple Choice

A firm enters into a consent decree to avoid an even greater legal setback.If the terms of the consent decree effectively double the firm's fixed costs, then

• A)marginal cost more than doubles
• B)marginal cost doubles
• C)marginal cost remains unchanged
• D)average total cost remains unchanged
• E)average variable cost doubles

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