Just a discussion post no format needed Topic: 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: 1.    the firm's AFC (average fixed cost); 2.    the firm’s AVC (average variable cost); 3.    the firm’s ATC (average total cost); and, 4.    the firm’s MC (marginal cost)? 2.    What changes, if any, is there likely to be in these same cost CURVES?

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Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.