Part 1

Suppose a business experiences a sudden increase in its fixed costs. For example, suppose property taxes increase dramatically. What impact, if any, will this have on the following:

1. the firm's AFC (average fixed cost);
2. the firm's AVC (average variable cost);
3. the firm's ATC (average total cost); and,
4. the firm's MC (marginal cost)

Part 2

What changes, if any, is there likely to be in these same cost CURVES?