A chemical-producing firm is located just upstream from an electric power plant.Instead of the more expensive procedure of burying its wastes,the chemical-producing firm begins dumping its waste into the stream.This causes increased variable costs for the power plant,which uses water from the stream to cool its turbines.The chemical producer's dumping of waste into the stream causes
A) The MC of the chemical firm to shift downward and the MC of the power company to shift upward.
B) The MC of the chemical firm to shift upward and the MC of the power company to shift downward.
C) Only the MC of the chemical firm to shift upward.
Correct Answer:
Verified
Q72: In cost-benefit analysis,the government should intervene as
Q73: Q74: The marginal cost of reducing pollution Q75: Q76: Q78: When thinking about the real costs of Q79: The marginal benefit of reducing pollution Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
A)Rises as![]()
![]()
A)Rises as