A Chemical-Producing Firm Is Located Just Upstream from an Electric

question 135

Multiple Choice

A chemical-producing firm is located just upstream from an electric power plant.Instead of the more expensive procedure of burying its wastes,the chemical-producing firm begins dumping its waste into the stream.This causes increased variable costs for the power plant,which uses water from the stream to cool its turbines.The chemical producer's dumping of waste into the stream causes

• A)The MC of the chemical firm to shift downward and the MC of the power company to shift upward.
• B)The MC of the chemical firm to shift upward and the MC of the power company to shift downward.
• C)Only the MC of the chemical firm to shift upward.
• D)Only the MC of the power firm to shift downward.

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Definitions:

Per Capita Incomes

The average income earned per person in a certain area or country, calculated by dividing the area's total income by its population.

Birth Rates

The average number of births per 1,000 people in a given population during a specific period of time.

Demographic Transition

The transition from high birth and death rates to lower birth and death rates as a country or region develops from a pre-industrial to an industrialized economic system.

Population Growth

An increase in the number of individuals in a population over a specific period of time.