User Account

All Pages

Discussion topic-increase in fixed costs

Assignment Help Macroeconomics
Reference no: EM132632295

Discussion Topic: Increase in Fixed Costs

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)?

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

Reference no: EM132632295

Questions Cloud

What under fifo equivalent units for beginning wip are : At the beginning of the process and beginning inventory is 5,000 units that are 25% complete, under FIFO equivalent units (EU) for beginning WIP are
Discussion topic-prescription medications : Critically analyze the pros and cons of putting a price ceiling on prescription medicine. Make sure to use concepts from the chapter
Compare the diagnosis of erysipelas and cellulitis : A 79 year old male presents with a fever. Upon assessment it is noted that he has a large reddened area on his left calf. It is warm and tender to the touch.
What most appropriate cost driver for the payroll processing : Allocate the costs of payroll processing using an activity-based costing system. The most appropriate cost driver for the payroll processing cost pool is the
Discussion topic-increase in fixed costs : Suppose a business experiences a sudden increase in its fixed costs. For example, suppose property taxes increase dramatically.
Draw up a projected debtors schedule of Flex Group : Salaries will be paid at 15 000 on January and 10% increase thereafter per month. Draw up a projected debtors schedule of Flex Group
Which revenue variances can be broken down into : Which Revenue variances can be broken down into? Which of these factors could not be the cause of a direct labour efficiency variance?
Discuss addiction counseling skills and treatment approaches : This week you will showcase your knowledge about addiction counseling skills and treatment approaches you learned in class. The context of the presentation.
What is the return on invested capital for the transaction : Assume that Ravi buys 1,000 shares of RS stock at $20 per share with a minimum cash investment, What is the return on invested capital for the transaction?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd