User posted a question
Indicate how each of the following events would affect a firm’s indicated short run cost curves (i.e. would the
cited curve shift up, shift down, experience a movement along, or experience no change).
Hint: See pp. 8-12 in the Notes found in the Chapter 5 Student Package.

Slumping sales cause the firm to lay off workers.

ATC effect =

MC effect =

Wage rates decrease by 20 percent.

AFC effect =

MC effect =
Attachment Preview:
  • 1150chp5assignment1101.doc Download Attachment

    Chapter 5 Assignment
    1.

    Fill in all the blanks in table below using the limited cost information provided. Hints: [1] If you know an
    average, you should be able to calculate a total, [2] marginal...
    Show more