This Diagram Shows the Costs Incurred by Firm a and Firm

question 34

Multiple Choice

This diagram shows the costs incurred by firm A and firm B as they reduce the pollution from their factories.MACA represents the marginal abatement cost for firm A and MACB represents the marginal abatement cost for firm B.
-Refer to the diagram above.Suppose that the government imposes a tax of $200 per tonne of pollution per day.As a result,firm A will reduce pollution by _______ tonne(s) per day and firm B will reduce pollution by _________ tonne(s) per day.

• A) 1;3
• B) 3;1
• C) 2;6
• D) 6;2
• E) 3;3

Understand the role of the margin of safety in assessing risk in sales projections.

Calculate and interpret the degree of operating leverage.

Use break-even analysis to make informed business decisions.

Analyze and solve problems related to the sales mix and its impact on company profitability.

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Definitions:

Inferential Statistics

A branch of statistics that uses a random sample of data taken from a population to describe and make inferences about the population.

Practice A Lot

An approach or recommendation emphasizing the importance of repeated exercise or activity to improve or master skills.

Use The Book

An instruction suggesting to refer to or consult a particular book for information, guidance, or as part of a task.

Statistical Procedures

A set of steps and methods followed to organize, summarize, analyze, and interpret data to make decisions or draw conclusions.