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question 53

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Use the following information for questions
Hermantic, Inc.can produce 100 units of a component part with the following costs: Use the following information for questions  Hermantic, Inc.can produce 100 units of a component part with the following costs:   -If Hermantic, Inc.purchases the units externally for $80,000, by what amount will its total costs change? A) An increase of $80,000 B) An increase of $5,000 C) An increase of $17,000 D) A decrease of $22,000
-If Hermantic, Inc.purchases the units externally for $80,000, by what amount will its total costs change?


Definitions:

Marginal Cost

The cost of producing one additional unit of a good or service.

Abating Emissions

The process of reducing the amount of pollutants released into the atmosphere.

Emissions

The act of releasing substances, especially gases or radiation, into the environment as a byproduct of activities like manufacturing or driving.

Emissions Fee

Charge levied on each unit of a firm’s emissions.

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