Refer to the Information Provided in Figure 15

question 30

Multiple Choice

Refer to the information provided in Figure 15.6 below to answer the question(s) that follow. Figure 15.6
-Refer to Figure 15.6. If Trollioʹs T-shirts is producing the quantity where MR = MC and selling each T-shirt at the price where D = ATC, then in the long run this firm should ________ the selling price and ________ quantity.

• A) increase; decrease
• B) decrease; increase
• C) increase; increase
• D) not change; not change

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Definitions:

Civil Penalties

Civil penalties are financial charges levied by a governmental agency as punishment for violations of legal regulations or statutes.

Resource Conservation and Recovery Act Permit

A permit required under the Resource Conservation and Recovery Act (RCRA) for certain operations that generate, treat, store, or dispose of hazardous waste.

Precautionary Principle

A strategy to cope with possible risks where scientific understanding is yet incomplete, prioritizing the prevention of harm when making decisions.

Regulatory Scheme

A system of regulations established by governments or regulatory bodies to control or govern specific activities, industries, or behaviors.