Explain what happens to apples average total cost curve

Reference no: EM133659693

Problem: Apple has hired your consulting company to forecast how new taxes proposed by the government will affect their production costs. Background. By way of background, you first introduce the Apple executives to the concepts of the cost curves and show how changes in the input costs affect these curves. Apple uses two inputs, capital and labor. In the short-run, Apple can not adjust the amount of capital it is using, but it can adjust the size of its workforce. Explain what happens to Apple's average total cost curve (ATC), average variable cost curve (AVC), and the marginal cost curve (MC) when the cost of renting capital increases?

Reference no: EM133659693

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