\begin{tabular}{l} The government imposes a \$1,QQQ per year license fee on all pizza \ restaurants. As a result, which cost curves shift? \ \hline OA) average total cost and marginal cost \ \hline OB) average total cost and average fixed cost \ \hline OD) average variable cost and marginal cost \ \hline\end{tabular}

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1. The license fee is a fixed cost, so only the fixed cost component of total cost is increased.
2. The average fixed cost shifts upward because it is calculated by dividing the fixed cost by the quantity, i.e., $$ AFC = \frac{FC}{Q} $$.
3. The average total cost, given by $$ ATC = AFC + AVC $$, will also shift upward because the $$ AFC $$ component has increased.
4. The marginal cost (MC) and average variable cost (AVC) remain unchanged because they only depend on variable factors of production, not on fixed costs.

Thus, the cost curves that shift are the average total cost and average fixed cost.

OB) average total cost and average fixed cost
OB) average total cost and average fixed cost

The government imposes a $1,QQQ per year license fee on all pizza

restaurants. As a result, which cost curves shift?

OA) average total cost and marginal cost

OB) average total cost and average fixed cost

OD) average variable cost and marginal cost

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The government imposes a $1,QQQ per year license fee on all pizza restaurants. As a result, which cost curves shift? OA) average total cost and marginal cost OB) average total cost and average fixed cost OD) average variable cost and marginal cost