Question
Using the data in the table, show what happens to the firm's output choice and profit if the fixed costs of production increases from $100
Using the data in the table, show what happens to the firm's output choice and profit if the fixed costs of production increases from $100 to $150 and then to $200. Assume that the price of output remains at $60 per unit. What general conclusion can you reach about the effects of fixed costs on the firm's output choice?
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International Economics
Authors: Robert C. Feenstra, Alan M. Taylor
3rd edition
978-1429278515, 142927851X, 978-1319029517, 1319029515, 978-1429278447
