If a Monopolist Incurs a Large Fixed Cost That Shifts

Multiple Choice

If a monopolist incurs a large fixed cost that shifts its average total cost curve upward,the effect on price and output will be

A) price and output will both rise
B) price will rise and output will fall
C) the firm will lower its price so that elastic demand will raise revenues to cover the additional cost
D) the firm will pass the higher cost on to customers without changing the amount consumers will buy
E) there will be no effect on price or output