(c) electricity for running the machines; (d) basic minimum wages agreed with the union; (e) overtime pay; ( rental paid for the use of factory space on conIIactual terms; (g) purchase costs of machinery. If the firm experiences an increase in fixed costs, state the effect on : (i) Average Variable Costs (ii) Marginal Costs The following table shows the cost schedule of Firm A: of Total Costs of Machines Total Costs of Raw Materials 2,?00 3,300 3,700 4,000 4,000 6,000 (a) Is Firm A operating in the short-run or long-run? Explain. (b) Calculate the marginal costs of Firm A at each level of output. (c) 1Which economic law is illustrated in your answers in [b]? Explain the law