Walmart is Making Changes

Walmart changed the way it buys shopping bags.

Questions

1. How is Walmart lowering the cost of the vests worn by its workers?
2. Does lowering the cost of the vests worn by its workers change total fixed cost or total variable cost? What is the effect on Walmart’s short-run cost curves?
3. Walmart is changing the type of lightbulbs it uses in stores and parking lots. Does this change total fixed cost or total variable cost? What is the effect on Walmart’s short-run cost curves?
4. Walmart is changing the type of plastic bags it uses to pack customer shopping. Does this change total fixed cost or total variable cost? What is the effect on Walmart’s short-run cost curves?
5. Draw a graph to illustrate your answers to #2, #3, and #4.