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Suppose that Firm As total cost function were to change to TCA(qq) = 109a + 50, (so, a fixed cost of 50 has been added). Which of the following statements would then be TRUE? This will decrease Firm As equilibrium level of output b. a. This will increase Firm Bs equilibrium level of output This will not affect either firms equilibrium level of output d. c. This will increase the price at which output is sold in this market Suppose that Firm As total cost function were to change to TGd9a) = 209a, (so, Firm As marginal cost has increased from 10/unit to 20/unit). Which of the following statements would then be TRUE? a. b. c. d. This will decrease both Firm As and Firm Bs equilibrium levels of output This will decrease Firm As equilibrium level of output, but increase Firm Bs This will increase Firm As equilibrium level of output, but decrease Firm Bs This will increase both Firm As and Firm Bs equilibrium levels of output
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