average fixed cost (AFC) curve, average variable cost (AVC) curve, the average total cost (ATC) curve, and the marginal cost (MC)

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 the firm's AFC (average fixed cost), AVC (average variable cost), ATC (average total cost) and MC (marginal cost) and therefore these cost curves? Why?

When fixed prices go up the following will happen:

AFC = TFC/Q will go up because TFC rises.
AVC = TVC/Q will NOT change because TVC does not change.
ATC = TC/Q = (TVC + TFC)/Q will ...

Solution Summary

This solution exemplifies average fixed cost (AFC) curve, average variable cost (AVC) curve, the average total cost (ATC) curve, and the marginal cost (MC).

... Why doesn't the marginal-cost curve also intersect the average-fixed-cost curve at its minimum point? ...Total output Cost TFC TVC AFC AVC ATC MC 100 0 100 0 ...

... illustrates the behavior of the AFC, AVC, ATC and MC...Total Total costs marginal costverage fixed costs variable cost A Average Average total costs 0 $100 $0 ...

... effect, what the AFC curve does is ... and the [FC or the AFC]. ... relationships among average fixed costs, average variable costs, average total costs, and marginal...

... the manufacturer's AVC, ATC, and MC curves Fill in ... the long-run average total cost curve upward. ...AVC), average total cost (ATC), and average fixed cost (AFC). ...

... 3. What does the average fixed cost curve measure? 4. What does the average total cost curve measure? ... productivity affect the shape of short-run cost curves? ...

... Why doesn't the marginal cost curve also interest the average fixed cost curve at it's minimum point: Total output Costs TFC TVC AFC AVC ATC MC 0 $100 ...

... the table by computing total cost, average fixed cost, average variable cost, average total cost, and marginal cost. Q TFC TVC TC AFC AVC ATC MC 0 $100 $0 ...

... Graph AFC, AVC, ATC, and ... each curve...Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost 0 ...

... TC), Average cost curves (AFC, AVC, ...Marginal cost curve (MC) ...Fixed Cost Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost (Q ...