Explain how the events listed in

a. through

d. would affect the following costs at Southwest Airlines:

1. Marginal cost 2. Average variable cost 3. Average fixed cost 4. Average total cost

a. Southwest signs a new contract with the Transport Workers Union that requires the airline to increase wages for its flight attendants.

b. The federal government starts to levy a $20-perpassenger carbon emissions tax on all commercial air travel.

c. Southwest decides on an across-the-board 10 percent cut in executive salaries.

d. Southwest decides to double its television advertising budget.