The Marginal Cost of Pollution _______ as the Quantity of Pollution

question 96

Multiple Choice

The marginal cost of pollution _______ as the quantity of pollution emissions _______ .

• A) remains constant; increases
• B) decreases; increases
• C) increases; increases
• D) remains constant; decreases

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Definitions:

Return On Sales

A ratio used to evaluate a company's operational efficiency, calculated by dividing operating profit by sales revenue.

Accrual Accounting

A financial recording approach that documents incomes and expenditures at the time they happen, irrespective of the actual cash flow.

Accrued Revenues

Income that has been earned but not yet received, recorded as an asset on the balance sheet to reflect sales that have taken place.

Liabilities

Financial obligations or debts that a company owes to others, which must be paid back in the future.