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Suppose a Manufacturing Firm That Is About to Be Regulated

Question 16

Multiple Choice

Suppose a manufacturing firm that is about to be regulated faces the following actual and potential production costs: 1) $4,000 before regulation;2) $4,550 in the future without the regulation;and 3) $5,200 in the future with the regulation.The true cost of the proposed regulation is ________.


A) $550
B) $1,200
C) $650
D) impossible to determine from the information provideD.

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