An Increase in the Fixed Costs of a Monopoly Firm

question 215

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)decrease;decrease

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Definitions:

Original Expense

The initial cost or outlay for a project or activity before any adjustments, savings, or overages are applied.

Project Champion

An individual within an organization who promotes and supports a project, often helping overcome obstacles and garner executive sponsorship.

Influential Person

An individual who has the power to affect the opinions or actions of others due to their authority, knowledge, position, or relationships.

IRR

Internal Rate of Return, a financial metric used in capital budgeting to estimate the profitability of potential investments.