How would each of the following affect the firm’s marginal cost (MC), average variable cost (AVC), and average total cost (ATC) curves?
A decrease in material costs.
no change MC, no change AVC, decreases ATC
increase MC, increase AVC, increase ATC
increase MC, no change AVC, increase ATC
decrease MC, decrease AVC, decrease ATC
no change MC, no change AVC, increases ATC
decrease MC, no change AVC, decrease ATC
The rent that the firm pays on the building that it leases decreases.
no change MC, no change AVC, decreases ATC
increase MC, increase AVC, increase ATC
increase MC, no change AVC, increase ATC
decrease MC, decrease AVC, decrease ATC
no change MC, no change AVC, increases ATC
decrease MC, no change AVC, decrease ATC
An increase in wages.
no change MC, no change AVC, decreases ATC
increase MC, increase AVC, increase ATC
increase MC, no change AVC, increase ATC
decrease MC, decrease AVC, decrease ATC
no change MC, no change AVC, increases ATC
decrease MC, no change AVC, decrease ATC
The government imposes a fixed amount of tax.
no change MC, no change AVC, decreases ATC
increase MC, increase AVC, increase ATC
increase MC, no change AVC, increase ATC
decrease MC, decrease AVC, decrease ATC
no change MC, no change AVC, increases ATC
decrease MC, no change AVC, decrease ATC
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