If a firm spends $600 on advertising, its

Name: If a firm spends $600 on advertising, its
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When a firm spends $600 on advertising, it is considered a fixed cost as it does not change with the level of output. Therefore, it would only shift the firm's ATC curve upward since fixed costs are included in calculating ATC. It would not affect the MC curve since it is the additional cost of producing one more unit of output and advertising does not affect the variable costs of production.

If a Firm Spends $600 on Advertising, Its