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The government imposes a $\$ 1,000$ per year licensefee on all pizza restaurants. As a result, which costcurves shift?a. a average total cost and marginal costb. average total cost and marginal costb. average total cost and marginal costc. average variable cost and marginal costd. average variable cost and average fixed cost
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b. average total cost and average fixed cost.
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The Costs of Production
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Marie Joi L.
November 19, 2020
Average and marginal cost …
Marginal Average cost for …
uh, so this this is a question from Chapter 13. This question is talking about what's well, herring. If the government imposes $1000 per year, I said no license free for all pizza restaurant. So what's what? Overhype son? For the total cost, the average took her past average marginal cost and average unbearable cost. Before we're attempting this question, the friend thing wing I need to two is too. Be clear about the definitions. So I I just pull out of the death of peace that comes from the task book here to the terrible cost. We know it's causes are very quantities wherever way, the corny. That's part of proceed. So we know this $100 is that it is proposed all restaurants, right? So it doesn't it doesn't have any relationships is a quantity. What I mean by quantity is a quantity off pizza so great it's not a imposed. Any text own. Oh, when if on restaurants, if the restaurant is sold one pieces one piece is she so pieces host under, so it's action it words change. Raise the total cost. Also, the feast causes change, right? Not, oh, bearable cause because the It doesn't have any relationship with a quantity off, right? Also, it has nothing to do with the marginal cost right. Causes a race from the one actual unit production. There's nothing to do. Waste that one an actual, you know, protection. So we now hear what what has been changed. This is total cost, right? It's a total cost. Onda fixed cost. So the crown's there will be so as a result, which costume curves shift or B average total trust and ah, average fist costs So it will be. And so it's gonna be number hustle. What's what's so the answer. So the, uh so the answer is average, total and fixed thanks.
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