Suppose Ben Owns a Small Company That Makes Kites If Ben's Fixed Cost Rises, Then in the Short Run
Multiple Choice
Suppose Ben owns a small company that makes kites. The market for kites is perfectly competitive, and kites sell for $25 each. Ben's total production costs vary depending on the number of kites he makes each day, as shown in the accompanying table.
If Ben's fixed cost rises, then in the short run, his:
A) profit-maximizing level of output will rise.
B) profit-maximizing level of output will fall.
C) profit-maximizing level of output will not change.
D) economic profit will not change.
Correct Answer:

Verified
Correct Answer:
Verified
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