If the Environmental Protection Agency (EPA) Directs an Old Lace

Multiple Choice

If the Environmental Protection Agency (EPA) directs an old lace factory to install an expensive water purification system to treat its wastes before they are discharged into theriver,

A) the price of lace will fall
B) the lace factory may go out of business
C) this directive is unenforceable
D) the private cost curve will shift to the right
E) more lace is sold so the factory can cover the higher costs