Is marginal cost higher-lower for firm with high fixed costs

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Suppose that an industry has high fixed costs to enter but, other than that, is competitive.

A. What will be the effect of the high fixed costs to the number of firms in the industry? To the firm size ? Is marginal cost higher or lower for a firm with high fixed costs? Is price higher or lower? Is quantity produced higher or lower?

B. Give an example of a firm with a high fixed cost and a firm with a low fixed cost. Give an example of a firm with low variable costs and a firm with high variable costs.

Reference no: EM13998454

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