Effect of increase in fixed costs on the firms supply curve

Reference no: EM13700941

Draw a (standard) U-shaped SAC curve, U-shaped SAVC curve, and upward sloping SMC curve for a perfectly competitive firm. Indicate the firm’s short-run supply curve. What will be the effect of an increase in fixed costs on the firm’s supply curve and on its profits?

Reference no: EM13700941

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