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?
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?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 3CQQ
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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 (
3. the firm’s ATC (
4. the firm’s MC (marginal cost)?
2. What changes, if any, is there likely to be in these same cost
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