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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,
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 (and show in a graph) what happens to Apple's average total cost curve (ATC), average variable cost curve (AVC), and the marginal cost curve (MC) when (a) the cost of renting capital increases
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