Chapter 11, Problem 11QE

(a)

To determine

Determine the effects on the different costs, when union agreement increases hourly pay.

(b)

To determine

Determine the effects on the different costs, when an annual lump sum tax imposed. 

(c)

To determine

Determine the effects on the different costs, when the government imposes a ‘stack tax’ on emission.

(d)

To determine

Determine the effects on the different costs, when the technology increases productivity of every worker.