Economics 9708 · AS & A Level · 7.5

7.5 — practice question

The diagram presents a profit-maximising firm in equilibrium. What would be the effect on the firm’s price, output and profit if fixed costs rose?

  • Aprice: rise; output: fall; profit: rise
  • Bprice: rise; output: fall; profit: fall
  • Cprice: unchanged; output: rise; profit: rise
  • Dprice: unchanged; output: unchanged; profit: fall

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