If the fixed costs for a firm rise what will be the impact on the marginal cost, average variable cost and average total cost curves? Explain
What will be an ideal response?
There will be no impact on either the marginal cost or average variable cost curves. The average total cost curve will shift up since the average fixed costs will have rise as well.
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The financing of U.S. export transactions, ceteris paribus
A) reduces U.S. interest rates. B) reduces the amount of foreign currency held by the Fed. C) reduces U.S. GDP. D) increases the amount of foreign currency held by U.S. banks.
is income tax rate one of the fed's monetary policies?
What will be an ideal response?
A Wall Street Journal headline reads: "Cigar Shortage Draws New Brands into Market." The shortage resulted from a renewed interest in smoking cigars. What best describes facts behind the headline?
A. Demand has shifted to the right and price has risen to equilibrate supply and demand. B. Supply has shifted to the left. Price has risen somewhat, but not enough to equilibrate supply and demand. C. Demand has shifted to the right. Price has risen somewhat, increasing quantity supplied, but not enough to equal quantity demanded. D. Supply has shifted to the right. Price has fallen somewhat, but not enough to equilibrate supply and demand.
Firms in imperfectly competitive markets are
A. completely inefficient. B. price takers. C. more efficient than firms in perfectly competitive industries. D. price makers.