Tina asked in Social ScienceEconomics · 8 years ago

How will a decrease in interest rates and shipping costs rise, affect a firm's cost curves?

(Cost curves are: ATC, AVC, AFC, and MC) Explain drawing diagrams to illustrate.

1 Answer

  • Anonymous
    8 years ago
    Favorite Answer

    ATC,AVC and MC will shift downward. AFC remains the same. If it is FOB, the main affects would be only the decrease in interest rate. In the case of CIF, the freight cost will be included.

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