-Refer to the Diagram Above

Multiple Choice

-Refer to the diagram above.Presume that any cost that the cost-plus regulated monopolist incurs is included in the average total cost (shown as ATC) and that all the costs can be included in the price that this monopolist can charge.An increase in fixed costs,such as expensive leather chairs,would cause the

A) ATC to shift down.
B) MC to shift up.
C) MC to shift down.
D) market to move closer to the surplus maximizing level of output.
E) market to move further away from the surplus maximizing level of output.