Which of the following will cause the average fixed cost curve of making cigarettes to shift?
A) a $5 million penalty charged to each cigarette maker
B) a $1 per pack tax on cigarettes
C) a $3 per hour wage increase
D) an increase in the demand for cigarettes

Question

Quizplus · Accepted Answer

A $5 million penalty charged to each cigarette maker is a fixed cost, affecting the average fixed cost curve by increasing it. Other options relate to variable costs or demand, not directly altering the average fixed cost curve.

Which of the Following Will Cause the Average Fixed Cost