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AP Microeconomics- Unit 8 Gov�t Intervention Policy Impacts 9. Dra.pdf

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AP Microeconomics- Unit 8: Govt Intervention: Policy Impacts 9. Draw a correctly labeled graph that shows the profit-maximizing firms price and output a. Assume the city in which this industry operates eliminates the business license fee (a fixed cost) for all the firms in this industry i. How does the elimination of this fee affect each of the following for the individual firm in the short-run? Explain 1. Output 2. Economic Profits.

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AP Microeconomics- Unit 8: Govt Intervention: Policy Impacts 9. Draw a correctly labeled graph that shows the profit-maximizing firms price and output a. Assume the city in which this industry operates eliminates the business license fee (a fixed cost) for all the firms in this industry i. How does the elimination of this fee affect each of the following for the individual firm in the short-run? Explain 1. Output 2. Economic Profits

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