Increase in Fixed CostsSuppose 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:the firm’s AFC (average fixed cost);the firms AVC (average variable cost);the firms ATC (average total cost); and,the firms MC (marginal cost)?What changes, if any, is there likely to be in these same cost CURVES?
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