(Solved by Humans)-Hi! I'm having trouble understanding why the correct answer for

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Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 5 Words: 1375

Question

Hi! I'm having trouble understanding why the correct answer for this question is what it is. The question is "Winona's Fudge Shop is maximizing profits by producing 1,000 pounds of fudge per day. If Winona's fixed costs unexpectedly increase and the market price remains constant, then the short run profit-maximizing level of output is..." and the correct answer is "still 1,000 pounds". Why wouldn't the profit maximizing level of output go up??



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