Fixed costs can significantly affect the profitability of a small business. One way to reduce fixed costs

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Fixed costs can significantly affect the profitability of a small business. One way to reduce fixed costs might be to outsource the company's sales and marketing functions to third parties. For example, a third party could schedule appointments with prospective clients and track progress, and web development might be undertaken by qualified students hired as the need arises. How would the market price and quantity be affected if all firms face the same fixed costs as opposed to a situation where one group has higher fixed costs than the other? Assume a competitive market with a horizontal long-run supply curve.

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Related Book For  answer-question

Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

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