Which of the following will cause the average fixed cost curve of making cigarettes to shift?

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.


Answer: A $5 million penalty charged to each cigarette maker.


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