- Explain how the listed events, a) to d), would affect the following at the Ford Motor Company (make sure you explain and justify your answer):
- (i) marginal cost
- (ii) average variable cost (iii) average fixed cost (iv) average total cost
- a) Ford signs a new contract with the unions that requires the company to pay higher wages
- b) The federal government starts to levy a $1,500 per vehicle tax on new cars
- c) The company decides to give its senior executives a one-time $100,000 bonus
- d) Ford decides to increase the amount it spends on designing new car models
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