The ____________________ May Not Be an Efficient Method of Reducing

question 106

Short Answer

The ____________________ may not be an efficient method of reducing emissions because it creates incentive to cheat and would have to be carefully monitored.

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Definitions:

Average Variable Cost

The total variable cost per unit of output, calculated by dividing total variable costs by the quantity of output produced.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced, expressed on a per unit basis.

Marginal Revenue

The increased income from the sale of one additional unit of a good or service.

Average Fixed Cost

Total fixed cost divided by the number of units produced. It always declines as output increases.