Hardy Makes Pesticides

question 439

Multiple Choice

Hardy makes pesticides. Run-off from its factory goes into gullies that run into Cane Creek, a trickle of water that rarely has fish in it and it is not used for recreation. Part of the year, the creek runs into a river. The outcome of EPA's regulation of Hardy's pollution would be:

• A) because the gullies and Cane Creek are not navigable waterways as required by the Clean Water Act, pollution into them does not fall under EPA jurisdiction
• B) because the discharges are toxic, the emissions are under the Superfund Act
• C) because the creek is not in constant connection to a navigable waterway, the EPA lacks jurisdiction
• D) if a waterway is not be navigable per se, it does not fall within the jurisdiction of Clean Water Act
• E) none of the other choices

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Definitions:

Fixed Factors

Inputs in production that cannot be altered in the short term, such as buildings and machinery.

Output

The amount of goods and services produced by a business, industry, or economy.

Marginal Cost

The cost added by producing one additional unit of a product or service, important for decision-making in resource allocation.

Average Total Cost

The total cost of production divided by the quantity of output produced; it includes all fixed and variable costs.