Indicate how each of the following would shift the (1) marginal cost curve

Indicate how each of the following would shift the

(1) marginal cost curve,

(2) average- variable cost curve,

(3) average fixed cost curve, and

(4) average- total cost curve of a manufacturing firm. In each case specify the direction of the shift.

 

A reduction in business property taxes

An increase in the nominal wages of production workers.

A decrease in the price of electricity.

An increase in insurance rates on plant and equipment.

An increase in transportation costs.

 

TUTORIAL PREVIEW

	Nature of the transaction	marginal cost curve	average- variable cost curve	average fixed cost curve	average- total cost curve
A reduction in business property taxes	Fixed Cost	No Change	No Change	Shift down	Shift down

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