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    Economics Principles and Policy Study Set 2
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    Exam 8: Output, Price, and Profit: the Importance of Marginal Analysis
  5. Question
    If a Firm's Fixed Cost (Overhead) Increases, What Happens to Its
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If a Firm's Fixed Cost (Overhead) Increases, What Happens to Its

Question 211

Question 211

Essay

If a firm's fixed cost (overhead) increases, what happens to its profit-maximizing price and output?

Correct Answer:

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Nothing.Whatever output was most profita...

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