Just a discussion post no format needed Topic: Increase in Fixed Costs 1.    Suppose a business experiences a sudden increase in its fixed costs. For example, suppose property taxes increase dramatically. What impact, if any, will this have on the following: 1.    the firm's AFC (average fixed cost); 2.    the firm’s AVC (average variable cost); 3.    the firm’s ATC (average total cost); and, 4.    the firm’s MC (marginal cost)? 2.    What changes, if any, is there likely to be in these same cost CURVES?

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Asked Mar 3, 2020
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Just a discussion post no format needed

Topic: Increase in Fixed Costs

1.    Suppose a business experiences a sudden increase in its fixed costs. For example, suppose property taxes increase dramatically. What impact, if any, will this have on the following:

1.    the firm's AFC (average fixed cost);

2.    the firm’s AVC (average variable cost);

3.    the firm’s ATC (average total cost); and,

4.    the firm’s MC (marginal cost)?

2.    What changes, if any, is there likely to be in these same cost CURVES?

 

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