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Imposition of stricter environmental protection laws

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Reference no: EM13315777

Indicate the effect that each of the following conditions will have on a firm’s average variable cost curve and average fixed cost curve. Substantiate your answer

a. The movement of a brokerage firm’s administrative office from Bangalore city to Whitefield, where the average rental cost is lower

b. The use of two shifts instead of three shifts in a manufacturing facility

c. An agreement reached with the labour union in which wage increases are tied to productivity increases

d. Elimination of lump-sum tax imposed on manufacturing firms

e. Imposition of stricter environmental protection laws.

Reference no: EM13315777

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