If a firm that emits a form of pollution is also a monopolist, is the firm more likely to be allocatively efficient? Explain
Yes. A monopolist maximizes profit by reducing output and raising price and produces too little output to be allocatively efficient. A polluting firm does not pay the full social cost of production and produces too much output. It is likely that the firm will be nearer to an allocatively efficient output volume.
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Based on Figure 6.1, suppose the government puts a tariff of $0.25 per bushel on soybean imports. How much will the tariff reduce imports?
A) Imports will decrease by 10 million bushels. B) Imports will decrease by 20 million bushels. C) Imports will decrease by 60 million bushels. D) Imports will not change after the tariff.
By almost every measure of social and economic well-being, for how long after the Civil War (1861–1865) did the South lag behind the rest of the country?
(a) For almost a century (b) For almost a decade before it adapted to life without slavery (c) For only two decades (d) Right down to the present day
In order to prosper, entrepreneurs in a market economy must
A) have at least one million dollars of personal wealth for the financing of new projects. B) undertake projects that create wealth and increase the value of resources. C) undertake projects that require resources that are more valuable than the products produced. D) find ways to slow technological change.
One might expect the interest rate correlation between nonpegs and closed economies with the base currency to be ____, but because of other circumstances, there may be a ____ correlation.
A) negative; positive B) positive; negative C) zero; positive D) negative; zero