Which of the Following Would NOT Be a Result of Laws

question 8

Multiple Choice

Which of the following would NOT be a result of laws that require firms to reduce pollution?

• A) lower spending by government
• B) higher prices to consumers
• C) lower wages to workers
• D) smaller profit to firms

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Definitions:

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume.

Avoidable Expenses

Costs that can be eliminated if a certain decision is made, such as discontinuing a product line.

Financial Advantage

A benefit enjoyed by an entity that puts it in a stronger financial position, such as lower costs, greater revenues, or superior investment returns.

Avoidable Expenses

Costs that can be eliminated if a particular decision is made, such as discontinuing a product or service.