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Title: Even though fixed costs do not affect the output decision, an increase in fixed costs results in a ... Post by: djsmyers on Nov 12, 2017 Even though fixed costs do not affect the output decision, an increase in fixed costs results in a wider range of prices for which the firm operates at a loss.
Title: Re: Even though fixed costs do not affect the output decision, an increase in fixed costs results in ... Post by: desperado2 on Nov 12, 2017 True. An increase in fixed costs will shift AC upward but leave AVC unchanged. The gap between AVC and AC represents prices at which the firm will operate at a loss.
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