Which of the following often involves positive external benefits?
A) water pollution
B) drunken driving
C) inoculation programs
D) tobacco smoking
C
You might also like to view...
Competitive pricing is efficient because
A) the price that consumers pay reflects the opportunity cost to society of producing the good. B) firms make positive economic profits in long-run equilibrium. C) average revenue equals average cost. D) firms produce above the minimum efficient scale.
The members of the Federal Reserve's Board of Governors
a. are elected to office by the public every fourteen years. b. are nominated by the U.S. Senate banking committee and confirmed by the U.S. house of representatives. c. are elected by bankers in each Federal Reserve Region. d. are appointed by the president of the U.S. and confirmed by the U.S. Senate.
Zippy Car Wash on Main Street needs at least one worker to operate. That one worker can clean 10 cars in an hour. If a second worker is present, 18 cars can be washed per hour. With three workers, 25 cars can be washed per hour. With a full staff of four workers, 30 cars can be washed per hour. What is the marginal product for number of workers at Zippy Car Wash?
a. the total number of cars that can be washed with four workers b. the cost of wages and benefits for Zippy’s workers c. the optimal staffing level for the car wash d. the per worker change in the number of cars that can be washed per hour
Two firms, Industrio and Capitalista, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below. Both firms currently use process A, and each emits 4 tons of smoke per day. The government is considering two plans to reduce pollution: requiring both firms to reduce pollution by 25 percent or auctioning pollution permits. Each permit would entitle the owner to emit one ton of smoke per day. Without a permit, no smoke can be emitted.ProcessABCDE(smoke/day)(4 tons/day)(3 tons/day)(2 tons/day)(1 tons/day)(0 tons/day)Cost to Industrio ($/day)$350$400$500$700$1,000Cost to Capitalista
($/day)$225$250$290$400$600 Given that both firms are currently using process A, if the government decided to auction pollution permits, it would need to sell ________ permits in order to reduce pollution by 25 percent. A. 2 B. 1 C. 6 D. 4