Which of the Following Statements About the Problem of Acid

question 22

Multiple Choice

Which of the following statements about the problem of acid rain is accurate?

• A) The 1990 amendments to the Clean Air Act addressed the problem of acid rain by requiring the installation of scrubbers.
• B) The 1970 Clean Air Act addressed the problem of acid rain by providing for an emission trading scheme.
• C) The 1990 amendments to the Clean Air Act addressed the problem of acid rain by instructing electric generating facilities to build tall smokestacks.
• D) The 1970 Clean Air Act addressed the problem of acid rain by requiring the installation of clean-coal technologies.

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Definitions:

Variable Cost Method

A cost-plus method of pricing setting in which only the variable costs are included in the cost amount to which the markup is added.

Fixed Manufacturing Costs

Expenses that do not change with the level of production, such as rent, salaries of permanent employees, and depreciation of factory equipment.

Markup

The extra charge added to the purchasing cost of items to encompass both overhead expenses and profit, setting the sale price.

Contribution Margin

The excess of sales over variable costs; the excess of manufacturing margin over variable selling and administrative expenses.