Average fixed cost and average variable cost

Assignment Help Business Economics

Reference no: EM131098353

Explain how each of the following will affect the average fixed cost, average variable cost, average total cost, and marginal cost curves faced by a steel manufacturer: New union agreement increases hourly pay. Local government imposes an annual lump-sum tax per plant. Federal government imposes a "stack tax" on emission of air pollutants by steel mills. New steel-making technology increases productivity of every worker.

Reference no: EM131098353

Questions Cloud

To earn money for her impending wedding : To earn money for her impending wedding, Elizabeth garage sales her vast wardrobe of conventional dresses, since it has been replaced by the Caribbean's finest collection of pirate chic. Ignoring the original cost of the dresses (Daddy paid that), bu..

What is the net present value and internal rate of return : Govenor Swann wishes to reinforce the fort at Port Royal for $150,000. He believes this will save $70,000 per year in pirate-inflicted damage. The improved defense is expected to last three years. Given the military's discount rate of 5%, what is the..

Introduce and explain what the article is about : Choose any article from the newspaper, magazine or internet pertaining to macroeconomics (U.S. Unemployment). Express your opinion using first person singular case: I agree or disagree with the article either totally,partially or do not agree. Justif..

Identical except for their marginal propensity to consume : Consider two closed economies that are identical except for their marginal propensity to consume (MPC). Each economy is in equilibrium with real GDP and aggregate expenditure equal to $100 billion. The first economy's MPC is 0.5. Therefore, its initi..

Average fixed cost and average variable cost : Explain how each of the following will affect the average fixed cost, average variable cost, average total cost, and marginal cost curves faced by a steel manufacturer: New union agreement increases hourly pay. Local government imposes an annual lump..

Supply curves and demand curves is perfect competition : This simulation is meant to illustrate supply and demand. Now, the only market structure that has supply curves and demand curves is perfect competition. (All four market structures we discuss in this class have demand curves, but only perfect compet..

Long period of slow economic growth : Following a long period of slow economic growth, the government of country X decided to open its economy and reduce trade barriers in order to boost economic growth. This provided the expected impetus to the economy as competition increased and the e..

Assume an economy that consists of consumers : Assume an economy that consists of consumers, government, business investors and an international sector. we will express this economy this way C+I+G+X=GDP Assume that the MPS is .3 How much can we expect the economy to expand if goverment increases ..

Cost of producing wheat is the rental cost of land : A farmer is producing where MC = MR. Say that half of the cost of producing wheat is the rental cost of land (a fixed cost) and half is the cost of labor and machines (a variable cost). If the average total cost of producing wheat is $8 and the price..

User Account

All Pages