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Discussion topic-increase in fixed costs

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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

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