If Social Regulation Increases a Firm's Fixed and Variable Costs

Multiple Choice

If social regulation increases a firm's fixed and variable costs:

A) then both marginal cost and average total cost will increase,and the firm will produce more.
B) then both marginal cost and avetage total cost will increase,and the firm will produce less.
C) then both marginal cost and average total cost will decrease,and profits will increase.
D) Marginal cost will increase,average total cost will be constant,and price will decline.
E) both price and quantity produced will fall.