Figure 6.2
-Figure 6.2 shows the cost structure of a firm in a perfectly competitive market. Suppose the current market price is $6 and the firm produces at a given output level. If the firmʹs total fixed cost increases due to a new government regulation, the short-run response of the firm should be to:
A) produce its current output level.
B) decrease its current output level.
C) increase its current output level.
D) There is not sufficient information.
Correct Answer:
Verified
Q50: Q52: Marginal revenue is equal to Q61: In short-run equilibrium for a competitive firm Q62: If the price a firm charges in![]()
A) the change
A)
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