What would happen to the firms initial cost curves

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Reference no: EM13242201

Consider a firm with a given sized production facility as described by a set of cost curves. Assume wages are the only variable cost. Answer the following, using sketch graphs where possible to illustrate your answers.

a. Explain what would happen to the firm's cost curves if a mandatory health insurance program is imposed on all firms.

b. Explain what would happen to the firm's initial cost curves if the plan requires this firm to provide a health insurance program for each employee worth 10 percent of the employee's salary.

c. Explain what would happen to the firm's initial cost curves if the plan instead requires this firm to provide a $100,000 group program that covers all of its employees, regardless of the number of employees?

Reference no: EM13242201

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