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6. Indicate the effect that each of the following conditions will have on a firm's average variable cost curve and its average cost curve. The
6. Indicate the effect that each of the following conditions will have on a firm's average variable cost curve and its average cost curve.
- The movement of a brokerage firm's administrative offices from New York City to New Jersey, where the average rental cost is lower
- The use of two shifts instead of three shifts in a manufacturing facility.
- An agreement reached with the labor union in which wage increases are tied to productivity increases.
- The elimination of sugar quotas (as it pertains to those firms that use a lot of sugar, such as bakeries and soft drink bottlers).
- Imposition of stricter environmental protection laws
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