A chemical factory and a fishing club share a lake. Producing chemicals creates water pollution that harms the fish. The marginal social cost, private marginal cost, and marginal benefit from producing chemicals are in the figure above
Initially the lake is owned by no one. Keeping in mind the Coase theorem, if transactions costs are low then if the chemical factory owns the lake ________ tons of chemicals will be produced and if the fishing club owns the lake, ________ tons of chemicals will be produced. A) 4; 4
B) 4; 8
C) 8; 4
D) 8; 8
A
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Medicaid is the most expensive program that the government runs that provides benefits to the poor.
A. True B. False C. Uncertain
A tariff is a tax on imports imposed by the country that is importing the goods
a. True b. False Indicate whether the statement is true or false
Clooney Brothers Inc sells wheat in a perfectly competitive market where the market price is $5.28 per bushel. It produces 250 bushels of wheat per month and has an average total cost of production of $3.50 . Which of the following is true in this scenario? a. The firm will break even
b. The firm will earn a profit of $445. c. The firm will suffer a loss of $600 and decide to shut down. d. The firm will suffer a loss of $200 and decide to stay open.
Exhibit 6-9 Cost schedule for firm X OutputQuantity Total FixedCost Total VariableCost 0 $100 $ 0 1 100 50 2 100 84 3 100 108 4 100 127 5 100 150 As shown in Exhibit 6-9, the marginal cost of producing the third unit is:
A. $50. B. $16. C. $24. D. $23.