If the Fixed Costs for a Firm Rise What Will

question 75

Essay

If the fixed costs for a firm rise what will be the impact on the marginal cost, average variable cost and average total cost curves? Explain.

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Definitions:

Pollution

The contamination of the environment with harmful or poisonous substances, adversely affecting the health of living organisms and ecosystems.

External Costs

Costs of an economic activity that are not borne by the participants but rather by other people or society at large.

Tax

A compulsory financial charge imposed by a government on individuals or entities to fund various public expenditures.

Marginal Social Benefit

An additional gain to society derived from consuming or producing another unit of a good or service.