If a Firm Had a Fixed Proportions Technology, Then the Pollution

question 3

Multiple Choice

If a firm had a fixed proportions technology, then the pollution produced by this firm:

• A) cannot be reduced.
• B) can be reduced only by lowering the level of output (holding technology constant).
• C) can be reduced by changing how the output is produced within the bounds of the existing technology.
• D) can be reduced only by increasing the number of firms in the industry.
• E) can be reduced only by changing the technology.

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