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Economics Homework Six Answers - Student Ten (view source)
Revision as of 14:48, October 22, 2009
, 14:48, October 22, 2009no edit summary
'''7. Suppose you own and drive a taxicab, and its annual license fee is $1000 per year. Suppose you learn that the license fee will increase to $1200 next year. Does this increase either increase, decrease, or have no effect on (a) marginal cost, (b) average variable cost, and (c) average total cost?'''
'''7. Suppose you own and drive a taxicab, and its annual license fee is $1000 per year. Suppose you learn that the license fee will increase to $1200 next year. Does this increase either increase, decrease, or have no effect on (a) marginal cost, (b) average variable cost, and (c) average total cost?'''
If you consider the license fee as part of the fixed cost then: a. no effect b. no effect c. yes, increase. if you consider it a variable cost then: a. no effect b. yes, increase c. yes, increase.
If you consider the license fee as part of the fixed cost then: a. no effect b. no effect c. yes, increase. If you consider it a variable cost then: a. no effect b. yes, increase c. yes, increase.