Evaluate and explain these two statements. 1. An increase in fixed cost increases the minimum-cost output. 2. An increase in fixed cost increases marginal cost.

/in /by

Evaluate and explain these two statements.

1.    An increase in fixed cost increases the minimum-cost output.

2.    An increase in fixed cost increases marginal cost.

You might also like
Given da (Demand of a) = 200.5 + 3.5I. Suppose this is an income demand function, interpret the result and show by the help of a diagram.
If the prices of both goods increase by the same percent, the budget line will (A) shift parallel to the left. (B) shift parallel to the right. (C) pivot about the x axis. (D) pivot about the y axis.
If the long-run Phillips curve shifts to the right, for any given rate of money growth and inflation the economy will have a. higher unemployment and higher output. b. higher unemployment and lower output. c. lower unemployment and higher output. d. lower unemployment and lower output.
In which of the following industries do firms set prices? a. competitive markets, but not monopoly markets b. monopoly markets, but not competitive markets c. competitive and monopoly markets d. neither competitive nor monopoly markets
Suppose that BJP imposes a tariff on imported autos to protect Indian auto industry from foreign competition. Assuming that India is a price taker in the world auto market , shown on a diagram : change in quantity of imports, loss of Indian consumers, gain to indian manufacturers, government revenue, dead weight loss associated with tariff.
Suppose 90-day investments in Europe have a 5% annualized return. In the United States, 90-day investments of similar risk have a 7% annualized return. In today’s 90-day forward market, €1 equals $1.32. If interest rate parity holds, what is the spot exchange rate ($/€)?
Explain the savings = investment identity in terms of where and how investors get to borrow the funds that need for their projects. Start right at the beginning and indicate the flow of funds from households to investors. Use a diagram if needed. Who is the middleman or facilitator in all this?
Differentiate between social equity and social equality and indicate which of the two is required for improvement in social welfare in a country that has a history of inequality.