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Author Question: A firm enters into a consent decree to avoid an even greater legal setback. If the terms of the ... (Read 92 times)

WhattoUnderstand

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A firm enters into a consent decree to avoid an even greater 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

Question 2

Total cost is calculated as
 a. FC + MC
  b. FC / MC
  c. (VC + FC) / MC
  d. VC + FC
  e. VC  output



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mk6555

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Answer to Question 1

C

Answer to Question 2

D





 

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