If the fixed cost of production is $100, then output will be 9 units (enter your response using an integer) and profit will be $ 131. If the fixed cost of production is $120, then output will be 9 units and profit will be $ 111. If the fixed cost of production is $140, then output will be 9 units and profit will be $ 91 What general conclusions can you reach about the effects of fixed costs on the firm's output choice? The firm's output choice O A. is affected by fixed costs because such costs decrease price. B. is unaffected by fixed costs because such costs leave profits unchanged. O C. is affected by fixed costs because such costs increase total costs. D. is unaffected by fixed costs because such costs leave total costs unchanged. E. is unaffected by fixed costs because such costs leave marginal costs unchanged.
If the fixed cost of production is $100, then output will be 9 units (enter your response using an integer) and profit will be $ 131. If the fixed cost of production is $120, then output will be 9 units and profit will be $ 111. If the fixed cost of production is $140, then output will be 9 units and profit will be $ 91 What general conclusions can you reach about the effects of fixed costs on the firm's output choice? The firm's output choice O A. is affected by fixed costs because such costs decrease price. B. is unaffected by fixed costs because such costs leave profits unchanged. O C. is affected by fixed costs because such costs increase total costs. D. is unaffected by fixed costs because such costs leave total costs unchanged. E. is unaffected by fixed costs because such costs leave marginal costs unchanged.
Chapter8: Production And Costs
Section: Chapter Questions
Problem 15QP
Related questions
Question
![Using the data in the following table, show what happens to the firm's output choice and profit if the fixed cost of production increases from $100 to
$130 to $180, where q is quantity and C is total cost. Assume that the price of output is $50.
MC
C (FC = $100)
C (FC = $130)
C (FC = $180)
100
130
180
50
150
180
230
28
178
208
258
20
198
228
278
14
212
242
292
18
230
260
310
20
250
280
330
22
272
302
352
38
310
340
390
45
355
385
435
10
55
410
440
490
11
65
475
505
555
If the fixed cost of production is $100, then output will be
units (enter your response using an integer)
|01234 5 6 7 89은;](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F077792fb-1201-4e9d-8bf0-6becc9f82e30%2F3547630e-acd0-4fd2-8b76-b85f579a5d2b%2F85hoeqh_processed.png&w=3840&q=75)
Transcribed Image Text:Using the data in the following table, show what happens to the firm's output choice and profit if the fixed cost of production increases from $100 to
$130 to $180, where q is quantity and C is total cost. Assume that the price of output is $50.
MC
C (FC = $100)
C (FC = $130)
C (FC = $180)
100
130
180
50
150
180
230
28
178
208
258
20
198
228
278
14
212
242
292
18
230
260
310
20
250
280
330
22
272
302
352
38
310
340
390
45
355
385
435
10
55
410
440
490
11
65
475
505
555
If the fixed cost of production is $100, then output will be
units (enter your response using an integer)
|01234 5 6 7 89은;
![If the fixed cost of production is $100, then output will be 9 units (enter your response using an integer) and profit will be $ 131.
If the fixed cost of production is $120, then output will be 9 units and profit will be $ 111.
If the fixed cost of production is $140, then output will be 9 units and profit will be $ 91.
What general conclusions can you reach about the effects of fixed costs on the firm's output choice?
The firm's output choice
OA. is affected by fixed costs because such costs decrease price.
B. is unaffected by fixed costs because such costs leave profits unchanged.
OC. is affected by fixed costs because such costs increase total costs.
O D. is unaffected by fixed costs because such costs leave total costs unchanged.
E. is unaffected by fixed costs because such costs leave marginal costs unchanged.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F077792fb-1201-4e9d-8bf0-6becc9f82e30%2F3547630e-acd0-4fd2-8b76-b85f579a5d2b%2Fbsaqvc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If the fixed cost of production is $100, then output will be 9 units (enter your response using an integer) and profit will be $ 131.
If the fixed cost of production is $120, then output will be 9 units and profit will be $ 111.
If the fixed cost of production is $140, then output will be 9 units and profit will be $ 91.
What general conclusions can you reach about the effects of fixed costs on the firm's output choice?
The firm's output choice
OA. is affected by fixed costs because such costs decrease price.
B. is unaffected by fixed costs because such costs leave profits unchanged.
OC. is affected by fixed costs because such costs increase total costs.
O D. is unaffected by fixed costs because such costs leave total costs unchanged.
E. is unaffected by fixed costs because such costs leave marginal costs unchanged.
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