6. In the profit-volume chart next page, EF and GH represent the profit-volume graphs of a single product company for 2019 and 2020, respectively. If 2019 and 2020 unit sales prices are identical, how did total fixed costs and unit variable costs of 2020 change compared to 2019?

6. In the profit-volume chart next page, EF and GH represent the profit-volume graphs of a single product company for 2019 and 2020, respectively. If 2019 and 2020 unit sales prices are identical, how did total fixed costs and unit variable costs of 2020 change compared to 2019?

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 4PA

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Question

2020 total fixed costs
2020 unit variable costs
а.
Decreased
Increased
b.
Decreased
Decreased
Increased
Increased
с.
d.
Increased
Decreased
Pesos,
F
H
G
E

6. In the profit-volume chart next page, EF and GH represent the profit-volume graphs of a
single product company for 2019 and 2020, respectively. If 2019 and 2020 unit sales prices
are identical, how did total fixed costs and unit variable costs of 2020 change compared to
2019?

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