If Households Could Be Charged Differently for Different Types of Garbage

question 119

Multiple Choice

If households could be charged differently for different types of garbage,

• A) the total amount of garbage would be reduced.
• B) recycling would be more difficult.
• C) costs of collecting garbage could be kept much lower.
• D) billing for garbage collection would be much easier.
• E) there would be a change in the types of items that are disposed of as garbage.

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Definitions:

Average Revenue

The amount of income generated per unit of sale or service offered, calculated by dividing total revenue by the number of units sold.

Profit Maximizes

The process by which a firm determines the price and output level that leads to the highest profit.

Average Total Cost

The per unit cost of production, calculated by dividing total cost by the quantity of output produced.

Fixed Cost

Costs that do not change with the level of production or output, such as rent or salaries.