When the government requires a firm to pay an emission charge in proportion to its pollution,

A. Neither marginal costs nor average total costs are affected.
B. Marginal costs rise, but average total costs do not.
C. Both average total costs and marginal costs rise.
D. Average total costs rise, but marginal costs do not.

Answer: C

Economics

You might also like to view...

Which of the following is considered a determinant of long-run economic growth?

a. Increase in the interest rates b. Changing expectations c. Increase in the money supply d. Growth in productive resources e. Reduction in government spending

Economics

Which of the following makes long-term low-interest loans to LDCs?

a. International Monetary Fund (IMF) b. Agency for International Development (AID) c. World Bank d. New International Economic Order (NIEO)

Economics