1. Suppose a business experiences a sudden increase in its fixed costs. For example, suppose property taxes increase dramatically. What impact, if any, will this increase have on the following:
   1. the firm's AFC (average fixed cost);
   2. the firm's AVC (average variable cost);
   3. the firm's ATC (average total cost); and,
   4. the firm's MC (marginal cost)?
2. What changes, if any, are there likely to be in these same cost CURVES?
3. Identify a fixed cost, other than rent or a mortgage payment, and three different variable costs in your home.
4. How would a change in a fixed cost in your home directly affect your variable costs?