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Readme [11.4K]
2 years ago
10

The firm negotiates a new agreement with its workers for lower wages. The ATC curve should be __________ and the AFC curve shoul

d be __________ after the agreement goes into effect.
Business
1 answer:
WINSTONCH [101]2 years ago
4 0

Lower; unchanged

  • Average total cost (ATC) in economics is calculated as total fixed and variable costs divided by the number of units produced. The normal shape of the average total cost curve is a U, meaning it drops, bottoms out, and then rises. The total cost of an organization is the sum of its fixed and variable costs.
  • The vertical summation of AFC and AVC must be obtained in order to graph average total costs (ATC). Plot the points as shown on the left after adding the two at each output level. Because it is the result of adding the AFC and AVC curves, the ATC curve is higher than the other two. You can see that it is U-shaped, just like the AVC curve, on the left.

Thus this is the answer.

To learn more about curve, refer: brainly.com/question/25109150

#SPJ4

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