Poppy Lipstick is a lipstick producer. A decrease in the rent paid by Poppy Lipstick
A) shifts its TFC curve downward but not its TVC curve.
B) shifts both its TFC curve and its TVC curve downward.
C) does not shift its TFC curve but shifts its TVC curve upward.
D) does not shift its TFC curve but shifts its TVC curve downward.

Question

Quizplus · Accepted Answer

Rent is a fixed cost, so a decrease in rent will shift the TFC curve downward. However, it will not affect the TVC curve, which shows variable costs.

Poppy Lipstick Is a Lipstick Producer