Business, 19.06.2020 00:57 jamesmarsdel

Indicate how each of the following would shift the (1) marginal-cost curve, (2) average-variable-cost curve, (3) average-fixed-cost curve, and (4) average-total-cost curve of a manufacturing firm. In each case specify the direction of the shift.

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Indicate how each of the following would shift the (1) marginal-cost curve, (2) average-variable-cost curve, (3) average-fixed-cost curve, and (4) average-total-cost curve of a manufacturing firm. In each case specify the direction of the shift. when there is an increase in business property taxes

1) Marginal-cost curve : No change

2) Average-variable-cost curve : No change

3) average-fixed-cost curve : Increases

4) average-total-cost curve of a manufacturing firm : Increases

Explanation:

An increase in the the business property taxes will not affect the average variable cost curve and the marginal cost curve this is because the property taxes are Fixed costs a manufacturing firm hence they are affected or does not affect the marginal or variable cost incurred by the manufacturing firm

while the average fixed cost curve and the average total cost curve will increase and move outwardly in their various curve graphs. the total cost curve is made up of both fixed and variable costs

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