Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How would each of the following affect the firm's marginal cost (MC), average variable cost (AVC), and average total cost (ATC) curves? The government imposes

How would each of the following affect the firm's marginal cost (MC), average variable cost (AVC), and average total cost (ATC) curves?

The government imposes a fixed amount of tax.

Answer 1 Choose...no change MC, no change AVC, decreases ATC

decrease MC, decrease AVC, decrease, ATC

increase MC, no change AVC, increase, ATC

increase MC, increase AVC, increase, ATC

no change MC, no change AVC, increases ATC

decrease MC, no change AVC, decrease, ATC

The rent that the firm pays on the building that it leases decreases.

Answer 2 Choose...no change MC, no change AVC, decreases ATC

decrease MC, decrease AVC, decrease, ATC

increase MC, no change AVC, increase, ATC

increase MC, increase AVC, increase, ATC

no change MC, no change AVC, increases ATC

decrease MC, no change AVC, decrease, ATC

A decrease in material costs.

Answer 3 Choose...no change MC, no change AVC, decreases ATC

decrease MC, decrease AVC, decrease, ATC

increase MC, no change AVC, increase, ATC

increase MC, increase AVC, increase, ATC

no change MC, no change AVC, increases ATC

decrease MC, no change AVC, decrease, ATC

An increase in wages.

Answer 4Choose...no change MC, no change AVC, decreases ATC

decrease MC, decrease AVC, decrease, ATC

increase MC, no change AVC, increase, ATC

increase MC, increase AVC, increase, ATC

no change MC, no change AVC, increases ATC

decrease MC, no change AVC, decrease, ATC

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Justice In A Global Economy Strategies For Home, Community, And World

Authors: Rebecca Todd Peters, Pamela K Brubaker, Laura A Stivers

1st Edition

0664229557, 9780664229559

More Books

Students also viewed these Economics questions

Question

Explain how to control impulses.

Answered: 1 week ago

Question

Will formal performance reviews become obsolete? Why or why not?

Answered: 1 week ago