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.
- Anonymous8 years agoFavorite 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.