An Example of a Variable Cost for a Cell Phone

question 139

Multiple Choice

An example of a variable cost for a cell phone manufacturer is

• A)units sold.
• B)the total costs of all cell phone produced.
• C)minutes talked.
• D)touch screens used in production.

---

Definitions:

Negative Externality

A situation where a third party is adversely affected by the outcome of a transaction or activity between others, not compensated by those causing the impact.

Acid Rain

Acid rain is precipitation with a high concentration of acidic components, typically resulting from industrial emissions that affect water, soil, and living conditions adversely.

Tradable Pollution Permits

Licenses that allow the holder to emit a certain amount of pollution that can be bought and sold, aiming to reduce overall pollution in a cost-effective manner.

Direct Regulation

Government-imposed requirements or restrictions on the operations of businesses or individuals to enforce standards or achieve objectives.