Ayushi Asked a Question
August 12, 2020 8:36 pmpts 30 pts
(4)37aH TA 21. An increase in a firm's fixed cost will (1) change marginal cost but not total cost n oul fo nite and 2 changc both marginal and total costs (3) change variable cost but not marginal cost (4) change total cost but not marginal cost 22. The 'expansion path' is the locus of points of producer's equilibrium resulting when the (1) price of labour input changes (2) price of capital input changes (3) money outlay of the entrepreneur is varied (4) entrepreneur snits onto a higher isoquant
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  • Nidhi taparia Best Answer
    21. The answer is (4). Fixed costs only affect total costs and not marginal costs. This is because marginal cost by definition is the change in total cost witu respect to a change...
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