Canosta, Inc

question 61

Multiple Choice

Canosta, Inc. determined that it must expand its capacity to accept a special order. Which situation is likely?

• A) Unit variable costs will increase.
• B) Fixed costs will not be relevant.
• C) Both variable and fixed costs will be relevant.
• D) The company should accept the order.

---

Definitions:

Pollution Abatement

Methods or processes implemented to reduce, control, or eliminate pollution from various sources.

Society's Optimal Amount

The level of production or consumption of a good that maximizes the overall welfare of society, considering both benefits and costs.

Marginal Benefit

The supplementary enjoyment or advantage derived from consuming an extra unit of a good or service.

Marginal Cost

The amount of money needed to manufacture an extra unit of a good or service.