microeconomics increase in fixed costs – onlineprowriters.com

Increase in Fixed Costs

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:

the firm’s AFC (average fixed cost);
the firmâ€s AVC (average variable cost);
the firmâ€s ATC (average total cost); and,
the firmâ€s MC (marginal cost)?

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

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