Explore BrainMass

Explore BrainMass

    Average and marginal cost curves

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Subject: Average and Marginal cost curves.
    Details: Explain how each of the following events will affect the average and marginal cost curves of the firm.
    A. An increase in lease payments.
    B. A decrease in the cost of utilities.
    C. Stricter environmental regulations requiring installation of scrubbers on smokestacks.
    D. An increase in the corporate profit tax.
    E. An increase in learning on the part of labor.

    © BrainMass Inc. brainmass.com February 24, 2021, 2:23 pm ad1c9bdddf
    https://brainmass.com/economics/output-and-costs/average-marginal-cost-curves-17685

    Solution Preview

    a. an increase in lease payments.

    Lease is not correlated by production, and won't change the productivity.
    Thus it will only increase total cost, and increase AC, but no effect on MC.
    b. A decrease in utility cost. A decrease in utility cost ...

    Solution Summary

    This solution provides a detailed, step by step explanation of the given question.

    $2.19

    ADVERTISEMENT