The most efficient way to get firms to reduce pollution is to
A. provide firms and consumers with the information about the effects of their actions and encourage them to behave responsibly.
B. make them pay for the social costs of production and let them decide how to respond to the higher costs.
C. make the worst polluters shut down and go out of business.
D. set uniform emission standards and require all firms to meet the standards.
Answer: B
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The $14.3 billion U.S. craft beer market is being subsidized at local, state, and even federal government levels, and the taxpayers pay for these subsidies. Economists know that these subsidies make Americans poorer on the whole
Why is it so difficult for U.S. taxpayers to end these subsidies for the craft beer market, a market which has been described as "booming" and "highly successful"?
These are the cost and revenue curves associated with a monopolistically competitive firm.
According to the graph shown, the monopolistically competitive firm will produce:
A. where MR = MC and will charge according to D. B. where D = MC and will charge according to MR. C. where D = MC and will charge according to ATC. D. where MR = MC and will charge according to ATC.
What happens as the result of a shortage?
A. There is downward pressure on prices. B. There is upward pressure on prices. C. Supply of the good decreases. D. Consumers begin to view the good as an inferior good because they have a hard time finding it.
What is the opportunity cost of going from point E to point D?
