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Boat(cost = $30, 000, usable for 10 years, 20 outings per year) $150 Boat fuel 45 Dock fees and insurance for the boat (average per
Boat(cost = $30, 000, usable for 10 years, 20 outings per year) $150 Boat fuel 45 Dock fees and insurance for the boat (average per trip) 130 Travel expenses to and from the lake 25 (100 miles @ $0.25 per mile: gas, oil, and tires, $0.18, and depreciation and insurance, $0.07) New fishing equipment purchases this year (prorated over 20 trips) 25 Annual fishing license 35 Bait and miscellaneous expenses 50 Food 40 Beverages 35 Traffic fine received on the way to the lake 40 Total cost per trip $575 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. a. The movement of a brokerage firm's administrative offices from New York City to New Jersey, where the average rental cost is lower. b. The use of two shifts instead of three shifts in a manufacturing facility C. An agreement reached with the labor union in which wage increases are tied to productivity increases d. The elimination of sugar quotas (as it pertains to those firms that use a lot of sugar, such as bakeries and soft drink bottlers) e. Imposition of stricter environmental protection laws
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