The figure above portrays a total revenue curve for a perfectly competitive firm. The firm's marginal revenue from selling a unit of output

A country's production possibilities will grow if it

a. produces more guns than butter. b. lowers its opportunity costs. c. makes more trade-offs. d. increases its resources.

Which of the following statements is true?

A. Firms are unlikely to relocate their high-pollution production to countries with lax environmental laws because they fear that such moves will result in adverse effects on their reputations. B. Evidence shows that measures to keep the environment clean represent a large percentage of the total costs of production for a firm in a country with strict environmental laws. C. There are large incentives for firms to relocate from countries with strict environmental laws to countries with lax environmental regulation. D. Imposition of a tax on the production of a particular high-pollution product typically has a greater impact on consumer surplus than on producer surplus.