Assuming there is no change in a product's price or the quantity demanded, if a business owner wants to increase her advertising expenses to a by $500 monthly, this would cause total costs to __________ and the break-even quantity to __________.

Question

Quizplus · Accepted Answer

Increasing advertising expenses will increase total costs. To cover these higher costs, the business will need to sell more units, thus increasing the break-even quantity.

Assuming There Is No Change in a Product's Price or the Quantity