Consider Figure 23-8. Why does the output rate in panel (b) remain at qe units per hour

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Consider Figure 23-8. Why does the output rate in panel (b) remain at qe units per hour even if the position of the AC curve shifts from AC1 to AC3 following an increase in fixed costs, and how do we know that economic profits then become negative?

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Economics Today The Macro View

ISBN: 9780134478760

19th Edition

Authors: Roger LeRoy Miller

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Question Posted: Jun 23, 2017 08:39 AM

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Consider Figure 23-8. Why does the output rate in panel (b) remain at qe units per hour

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The increase in fixed costs leaves marginal cost unaffected so the profitmaximizing ...View the full answer

Economics Today The Macro View

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