Suppose Sarah owns a small company that makes wedding cakes. The table below shows how Sarah's total cost varies depending on the number of wedding cakes she makes each day. If Sarah's fixed costs double, then in the short run, her profit-maximizing level of output:
A) will shrink to zero if she starts earning a loss.
B) will increase.
C) will decrease.
D) will not change.
Correct Answer:
Verified
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