If a Firm Adopts a Production Process That Is Costly

question 90

Multiple Choice

If a firm adopts a production process that is costly in order to reduce pollution,the result is

• A)A decrease in the firm's MC curve and a decrease in the firm's profits.
• B)An increase in the firm's ATC curve and an increase in the firm's profits.
• C)A decrease in the profit-maximizing rate of output and a decrease in the firm's profits.
• D)A decrease in the firm's ATC curve and an increase in the firm's profits.

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