BU/224 BU224 BU 224 Unit 7 Discussion 1
- Kaplan University / BU 224
- 23 May 2018
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BU 224 Unit 7 Discussion 1
Unit 7: Unit 7: Fixed
Costs and Variable Costs - Discussion
Topic: Increase in Fixed Costs
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:
a.
the firm's AFC (average fixed cost);
b.
the firm’s AVC (average variable cost);
c.
the firm’s ATC (average total cost); and,
d.
the firm’s MC (marginal cost)?
2.
What changes, if any, is there likely to be in these same cost
CURVES?
USA 
India