Suppose a firm is collecting $1,345 in total revenues and the total cost of its fixed factors of production rises from $200 to $300.One can speculate that the firm will:

Name: Suppose a firm is collecting $1,345 in total revenues and the total cost of its fixed factors of production rises from $200 to $300.One can speculate that the firm will:
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Question

Quizplus · Accepted Answer

An increase in the fixed factor's price increases costs,so reduces profit,but does not change marginal cost so does not affect the firm's output decision.

Suppose a Firm Is Collecting $1,345 in Total Revenues and the Total