If electric utilities continually reduce their emissions of ...

[sarasara]

If electric utilities continually reduce their emissions of sulfur dioxide
 
  A) the utilities will eventually be forced to go out of business.
  B) the marginal cost of further emissions will rise.
  C) the marginal benefit of additional emissions will rise.
  D) the total benefit of sulfur dioxide emissions will fall.

Question 2

Explain why a monopolistically competitive firm would not want to reduce its price all the way to its minimum average total cost even though doing so would allow it to increase sales?
 
  What will be an ideal response?

[yahahah24021]

Answer to Question 1

B

Answer to Question 2

Maximizing sales is not the goal of any firm but rather profit maximization. Since the monopolistically competitive firm faces a down-sloping demand and marginal revenue curves its decision to sell and produce at the point where marginal revenue equals to marginal cost is likely to occur at a point higher than its minimum average total cost. To reduce price any further would result in a reduction in profits or an increase in losses.