Increase in fixed costs

Assignment Help Managerial Economics
Reference no: EM13853163

Topics

Increase in Fixed Costs

Increase in Fixed Costs

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:

a. the firm's AFC (average fixed cost);

b. the firm's AVC (average variable cost);

c. the firm's ATC (average total cost); and,

d. the firm's MC (marginal cost)?

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

Reference no: EM13853163

Questions Cloud

Differential reinforcement of other behavior : Sally makes the 7th-grade track team by finishing before another girl by less than 0.05 seconds in her event-the 400 meter relay. Sally is proud of making the team but needs to work harder in the practices that follow.
Explain what was the impact on the supply of the product : What was the impact on the supply of the product and the impact on the demand for the product. Explain the impact on the price of the product and your decision on whether or not to buy the product.
Compute the value of d : Compute the value of D in the following cash flow diagram, if i = 10% over the 7 years. Use the appropriate gradient and uniform series.
Manufacturer total cost of producing cars : 1. The accompanying table shows a car manufacturer's total cost of producing cars.
Increase in fixed costs : 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:
Opening techniques to build rapport with the volunteer : Opening techniques to build rapport with the volunteer
Discuss ohio state studies theories of leadership : What is the difference between a leader and a manager? What is leadership? Discuss Ohio State studies theories of leadership.
Discussing the impact of dr. zimbardo’s study on social : discussing the impact of Dr. Zimbardo's study on social psychology
How is the work relevant to the field of cost engineering : I require Relevance, Applicability and Critical Evaluation.? How is the work relevant to the field of cost engineering? Can the results be applied? Give example of the paper's potential usefulness and identify what would make it more useful

Reviews

Write a Review

Managerial Economics Questions & Answers

  What suppliers might face a downward-sloping demand

What other suppliers might face a downward-sloping demand curve and what implications does this have for their advertising budget as compared to suppliers with horizontal demand curves?

  Managerial decision making research and analysis

Describe the company and provide a brief history of its operations. Find or use graphs to illustrate its financial performance over the years.

  Price elasticity assumed by the consultant

Evaluate the proposal. Be sure to include in your answer the price elasticity assumed by the consultant, as well as the published elasticity estimate.

  Ajax cleaning products is a medium-sized firm operating

Ajax Cleaning Products is a medium-sized firm operating in an industry dominated by one large firm Tile King. Ajax produces a multi-headed tunnel wall scrubber that is similar to a model produced by Tile King. Ajax decides to charge the same price as..

  Determine which of the organization forms would

From the scenario, examine the major implications for firms entering into a merger. Develop key guidelines to follow when creating the terms of the merger in order to benefit all parties concerned. Examine two (2) organizational forms of business (e...

  What is the probability of loss

What is the probability of loss if you bet the pass line and the no pass line in craps?

  Find the difference in profit-maximizing price

Explain why is advertising prevalent in many oligopolies, especially when industry demand is inelastic and illustrate your answer by supposing that with advertising, a company demand curve has price elasticity of -1.5 and without advertising,

  Introduction into conducting an empirical research

This paper's objective is to give you an introduction into conducting an empirical research and presenting the results of that research in a professionally written paper.  To carry out this research, you will identify an economic relationship (or a d..

  Explain basic distinction between microeconomic analysis

Explain the basic distinction between microeconomic analysis and macroeconomic analysis. Describe the types of issues that each branch of analysis focuses on - Describe the types of issues that each branch of analysis focuses on.

  Estimate the value of the investment timing option

Tropical Sweets is planning a project that will cost $70 million and will create expected cash flows of $30 a year for next 3-years. The cost of capital for this type of project is 10% and the risk-free rate is 6%.

  Evaluate each of these alternatives from the perspectives

Evaluate each of these alternatives from the perspectives of economic efficiency, equity, and the likely long-term impact on the firm.

  Marginal cost approach to decision making

Continental Airlines was doing something that seemed like a horrible mistake. All other airlines at the time were following a simple rule: They would only offer a flight if, on average,

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd