Calculation of company's average variable cost and its average cost curve.
Indicate the effect that each of the following conditions will have on a company's average variable cost (AVC) and its average cost curve (AC):
An agreement reached with the labor union in which wage increases are tied to productivity increases.
Calculation of variable cost and its cost curve.
Indicate the effect that each of the following conditions will have on a company's average variable cost (AVC) and its average cost curve (AC):
1.The elimination of sugar quotas (as it pertains to those companies that use a lot of sugar such as bakeries and soft drink bottlers).
2.The imposition of strict environmental protection laws.