# Suppose the federal government imposes a "stack tax" on the emission of air pollutants by steel...

## Question:

Suppose the federal government imposes a "stack tax" on the emission of air pollutants by steel mills. How would this affect the average fixed cost, average variable cost, average total cost, and marginal cost curves faced by a steel manufacturer?

## Tax:

In economics and finance, a tax can be defined as a mandatory financial charge that a person or firm has to pay to its ruling government as a fraction of their income or production.

## Answer and Explanation: 1

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View this answerIt is given that the federal government imposes a stack tax on the steel manufacturers on their air pollution emission level. As a result, it will...

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Chapter 4 / Lesson 8Learn what the average cost of a firm is and how it differs from total cost. Understand the distinction between short run and long run average total cost.

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