The following table shows four firms, the amount each pollutes, the marginal cost for each firm to clean up pollution, and the total cost to each firm of eliminating all pollution.FirmTotal Discharge (in tons)Marginal Cost of Cleanup(per ton)Total Cost of CleanupA60$5.00$300B70$8.00$560C80$7.50$600D90$4.00$360The total discharge of these four companies is 300 tons. Assume there is no one else who pollutes. If the government establishes a regulation requiring each company to reduce pollution by 50 percent, what will be spent on reducing pollution?
A. $1,050
B. $910
C. $660
D. $1,710
Answer: B
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Refer to the table above. In autarky the relative price of X (in terms of Y) in A would be
A) 3/4. B) 4/3. C) 3/9. D) $3.
In traditional economies, people base economic decisions on the precedents established by previous generations
a. True b. False Indicate whether the statement is true or false
Income redistribution:
a. may increase total utility for society b. may decrease the total quality of production so much that total utility for society decreases c. both of the above d. neither of the above
The consumer price index tries to gauge how much incomes must rise to maintain
a. an increasing standard of living. b. a constant standard of living. c. a decreasing standard of living. d. the highest standard of living possible.