Both firms depicted in Table 9.5 can benefit if Firm A sells its pollution permit allowing it to generate 1,000 gallons of wastewater to Firm B for:
A. a price between $12 and $15.
B. a price between $0 and $6.
C. a price greater than $20.
D. It is not possible for firms to benefit if Firm A sells a permit to Firm B.
Answer: A
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Why are sellers willing to sell more at a higher price?
What will be an ideal response?
After a price ceiling of $8 is placed on the market in the graph shown, which area represents consumer surplus?
A. A + C
B. A + B
C. A + B + C
D. A + B + C + D + F + G
Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 cash deposit, then, excluding the $1,000 initial deposit, the banking system can increase the money supply by:
a. $900. b. $910. c. $1,000. d. $9,000. e. $10,000.
Governments enact policies to
a. make the distribution of income more efficient. b. make the distribution of income more equal. c. maximize the use of the welfare system. d. minimize the use of in-kind transfers.