Question: Your company (Click.com) has low fixed costs but high variable costs. Your competitor's company (Brick & Mortar) has high fixed costs but low variable costs.
Your company (Click.com) has low fixed costs but high variable costs. Your competitor's company (Brick & Mortar) has high fixed costs but low variable costs. Currently both companies are producing 50 units at the same total cost. How will profits for each company be affected as more units are produced?
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