BU 224 Week 7 Discussion | Assignment Help | Purdue University Global

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?

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