Any change in a firm's fixed costs will change its profit-maximizing level of output.

Name: Any change in a firm's fixed costs will change its profit-maximizing level of output.
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Question

Quizplus · Accepted Answer

The profit-maximizing level of output is determined by the point where marginal cost equals marginal revenue, which is not directly affected by changes in fixed costs since fixed costs do not vary with the level of output.

Any Change in a Firm's Fixed Costs Will Change Its