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A Firm Replaces a Machine by Hiring 3 Hourly Production

Question 174

Multiple Choice

A firm replaces a machine by hiring 3 hourly production workers instead.


A) Both its fixed and variable costs will fall.
B) Both its fixed and variable costs will rise.
C) Its fixed costs will rise and its variable costs will fall.
D) Its fixed costs will fall and its variable costs will rise.

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