-Consider the firm shown in Figure 8-6.If there is an increase in fixed cost,then
A)the TR curve will rotate upward
B)the TR curve will shift to the right
C)the TR curve will be unaffected
D)the TC curve will shift downward
E)profits will rise

Question

-Consider the firm shown in Figure 8-6.If there is an increase in fixed cost,then
A)the TR curve will rotate upward 
B)the TR curve will shift to the right 
C)the TR curve will be unaffected 
D)the TC curve will shift downward 
E)profits will rise

Quizplus · Accepted Answer

An increase in fixed costs does not affect the total revenue (TR) curve, as TR is determined by price and quantity sold, not costs.

-Consider the Firm Shown in Figure 8-6