LSC CUMBERLAND EC202 MICRO>PKG<
LSC CUMBERLAND EC202 MICRO>PKG<
21st Edition
ISBN: 9781260586992
Author: McConnell
Publisher: MCG
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Chapter 9, Problem 4RQ

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. LO9.3

a.    A reduction in business property taxes.

b.    An increase in the nominal wages of production workers.

c.    A decrease in the price of electricity.

d.    An increase in insurance rates on plant and equipment.

e.    An increase in transportation costs.

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