Explain how each of the following will affect the average


Explain how each of the following will affect the average fixed cost, average variable cost, average total cost, and marginal cost curves faced by a steel manufacturer: 

  1. New union agreement increases hourly pay for production line workers.
  2. Local government imposes an annual lump-sum tax per plant.
  3. Federal government imposes a "stack tax" on emission of air pollutants by steel mills.
  4. New steel-making technology increases productivity of every worker.

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Business Management: Explain how each of the following will affect the average
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