BU 224 Week 7 Discussion | Assignment Help | Purdue University Global
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- 08 Nov 2019
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BU 224 Week 7 Discussion | Assignment Help | Purdue University Global
Unit
7 Discussion
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:
a.
the firm's AFC (average
fixed cost);
b.
the firm’s AVC (average
variable cost);
c.
the firm’s ATC (average
total cost); and,
d.
the firm’s MC (marginal
cost)?
2. What
changes, if any, is there likely to be in these same cost CURVES?