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Over the past two years, there have been significant increases in interest rates. Consider a firm that has financed its factory using a variable rate
Over the past two years, there have been significant increases in interest rates. Consider a firm that has financed its factory using a variable rate loan where the interest charged each year is determined by that year's interest rates. The interest on that loan must be paid each year regardless of how much the firm produces. Produce a graph that depicts the firm's typical average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC) in 2021, before interest rates increased. Label the horizontal and vertical axes. Label the curves using a subscript 0.Now suppose that interest rates increased significantly between 2021 and 2023. Please select one answer for each of the cost cures in the following table that states whether each curve would remain unchanged, shift up, shift down, or if the impact is uncertain in 2023. Please note that you should select only one choice for each curve. Average Fixed Cost (AFC) Question Blank 1 of 4 Average Variable Cost (AVC) Question Blank 2 of 4 Average Total Cost (ATC) Question Blank 3 of 4 Marginal Cost (MC)
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