Suppose Chris is a potter who makes mugs. His total costs depend on the number of mugs he makes each day, as shown in the accompanying table. $$\begin{array} { | c | c | }
\hline \text { Number d Mugs Per Day } & \text { Tatal Cast Per Day } \
\hline 0 & \$ 10 \
\hline 1 & \$ 14 \
\hline 2 & \$ 19 \
\hline 3 & \$ 25 \
\hline 4 & \$ 32 \
\hline 5 & \$ 40 \
\hline 6 & \$ 49 \
\hline
\end{array}$$
If Chris's fixed costs decrease, then in the short run, his profit-maximizing level of output will:

Question

Suppose Chris is a potter who makes mugs. His total costs depend on the number of mugs he makes each day, as shown in the accompanying table. $$\begin{array} { | c | c | } 
\hline \text { Number d Mugs Per Day } & \text { Tatal Cast Per Day } \
\hline 0 & \$ 10 \
\hline 1 & \$ 14 \
\hline 2 & \$ 19 \
\hline 3 & \$ 25 \
\hline 4 & \$ 32 \
\hline 5 & \$ 40 \
\hline 6 & \$ 49 \
\hline
\end{array}$$  
If Chris's fixed costs decrease, then in the short run, his profit-maximizing level of output will:

Quizplus · Accepted Answer

Fixed costs do not affect the marginal cost of production, which is what determines the profit-maximizing level of output. Therefore, a decrease in fixed costs does not change the quantity of output that maximizes profit.

Suppose Chris Is a Potter Who Makes Mugs If Chris's Fixed Costs Decrease, Then in the Short Run