AB224: Microeconomics Unit 7: Fixed Costs and Variable Costs - Discussion

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

                         Links to Other AB 224 Tutorials

      Just click the Discussion to go to respective tutorial.

-AB224: Microeconomics Unit 1: Beginning Principles – Discussion

-AB224: Microeconomics Unit 2: Scarce Resources and Trade - Discussion

- AB224: Microeconomics Unit 3: Supply and Demand - Discussion

- AB224: Microeconomics Unit 4: Consumer Choice and Utility Maximization - Discussion

- AB224: Microeconomics Unit 5: Surplus - Discussion

- AB224: Microeconomics Unit 6: Governmental Price Controls - Discussion

- AB224: Microeconomics Unit 7: Fixed Costs and Variable Costs - Discussion

- AB224: Microeconomics Unit 8: Cost Analysis and The Perfectly Competitive Market - Discussion

-AB224: Microeconomics Unit 8: Cost Analysis and The Perfectly Competitive Market - Discussion