If Social Regulation Increases a Firm's Fixed and Variable Costs

question 13

Multiple Choice

If social regulation increases a firm's fixed and variable costs:

• A)then both marginal cost and average total cost will increase,and the firm will produce more.
• B)then both marginal cost and avetage total cost will increase,and the firm will produce less.
• C)then both marginal cost and average total cost will decrease,and profits will increase.
• D)Marginal cost will increase,average total cost will be constant,and price will decline.
• E)both price and quantity produced will fall.