a) falls as output increases. b) is constant. C) does not impact a firm's profit level.

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 2MC
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1

In the short run, fixed cost:
a) falls as output increases.
is constant.
b)
c) does not impact a firm's profit level.
is directly proportional to average variable
d)
cost.
Transcribed Image Text:In the short run, fixed cost: a) falls as output increases. is constant. b) c) does not impact a firm's profit level. is directly proportional to average variable d) cost.
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