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How Would Each of the Following Affect the Firm's Marginal,average,and

Question 41

Essay

How would each of the following affect the firm's marginal,average,and average variable cost curves?
a.An increase in wages
b.A decrease in material costs
c.The government imposes a fixed amount of tax.
d.The rent that the firm pays on the building that it leases decreases.

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a.Wages are a variable cost,so MC,AVC,an...

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