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Refer to the Figure Above

Question 2

Multiple Choice

Refer to the Figure above. Panel (b) represents an industry that has experienced cost increases due to environmental regulations. The price per unit increase that the industry experiences, from p1 to p2


A) is equal to the cost per unit increase, from c1 to c2.
B) is less than the cost per unit increase, from c1 to c2.
C) is greater than the cost per unit increase, from c1 to c2.
D) cannot be accurately stated from the picture.

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