Which curves would be affected by the government imposing a $50,000 license on all liquor stores?

Question

Business

Hope Hooper

27 November, 10:13

Which curves would be affected by the government imposing a $50,000 license on all liquor stores?

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Answers (1)

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Alisson Liu · Answer 1

The answer is the "Fixed Cost Curved". Why? Because the $50,000 license is a fixed cost. The license serves as a permission to sell liquor. The fixed cost curved will be affected since, the cost of the license is $50,000 and will not increase nor decrease regarding the amount of liquor sold by the store.