If the firm\'s fixed cost increases by $1,000 due to a new environmental regulat
ID: 1237773 • Letter: I
Question
If the firm's fixed cost increases by $1,000 due to a new environmental regulation, in Figure 4, all the cost curves shift upward. the average variable cost and average total cost curves shift upward; but marginal cost is not affected. the average total cost curve shifts upward; the marginal cost and average variable cost curves are not affected. none of the curves shifts; only the fixed cost curve, which is not shown here, is affected. If the firm's fixed cost increases by $1,000 due to a new environmental regulation, its optimal output level increases. decreases. remains the same. can increase, decrease or remain constant, depending on whether the firm is can cut costs somewhere else.Explanation / Answer
a d d c b b