Recall the Application about determining the optimal level of methane abatement to answer the following question(s).Recall the Application. The EPA has estimated the cost of methane recovery at different recovery levels. Given those costs, the efficient level of methane recovery:
A. depends on the estimate of the marginal benefit of methane recovery.
B. is zero because the costs exceed the benefits.
C. will increase if scientists determine that methane is not as harmful as it is currently thought to be.
D. will include only recovery from landfills and coal mines, but not from natural gas distribution.
Answer: A
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What will be an ideal response?
Rhonda's utility of wealth is 65 units at $5,000, 80 units at $7,000, and 95 units at $10,000. Starting from zero wealth, she must choose between options A and B
Option A gives her $7,000 for sure. Option B gives her $5,000 with probability 0.6 or $10,000 with probability 0.4. Rhonda A) will choose A. B) will choose B. C) is indifferent between A and B. D) needs more information to make a choice.
The current account records
a. last year's flows of funds into and out of the country b. current flows of imports and exports of goods and services, net income earned by U.S. residents from foreign assets, and net transfer payments c. current flows of imports and exports of goods only d. only net income earned by U.S. residents from foreign assets e. only current flows of imports and exports of goods and services and net transfer payments
Which of the following may require the parties to renegotiate certain parts of a contract if market conditions change drastically?
a. Termination clause b. Omnibus clause c. Adjustment clause d. Reopener clause