Recall the Application about the reduction in costs of generating solar power to answer the following
question(s).
-Recall the Application. A tax levied on coal-fired plants that is based on the amount of carbon released in the atmosphere is considered by the firm as a:
A)variable cost.
B)fixed cost.
C)source of revenue.
D)sunk cost.

Question

Quizplus · Accepted Answer

A tax based on the amount of carbon released is a variable cost because it changes with the level of production or output, in this case, the amount of carbon emissions.

Recall the Application About the Reduction in Costs of Generating