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A Firm Enters into a Consent Decree to Avoid a Major

Question 111

Multiple Choice

A firm enters into a consent decree to avoid a major legal setback.If the terms of the consent decree effectively double the firm's fixed costs,then _____


A) marginal cost more than doubles.
B) marginal cost doubles.
C) marginal cost remains unchanged.
D) average total cost remains unchanged.
E) average variable cost doubles.

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