The data in the table show the marginal costs and marginal benefits to a city for five different levels of pollution control.Quantity of Pollution AbatementMarginal CostMarginal Benefit900 tons$400,000$100,000800 tons300,000150,000700 tons200,000200,000600 tons100,000250,000500 tons50,000300,000Refer to the above table. If the city seeks an optimal reduction of the externality, then it will select how many tons of pollution abatement?
A. 500
B. 600
C. 700
D. 800
Answer: C
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Refer to Figure 3-2. A decrease in the price of the product would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
A tax on individuals’ earnings is called the:
A. payroll tax. B. personal income tax. C. corporate income tax. D. excise tax.
The ABC Corporation decreases all of its inputs by 12 percent and finds that its output falls by only 8 percent. This means that initially it was producing:
A. in the range of economies of scale. B. in the range of diseconomies of scale. C. at the point of minimum efficient scale. D. where AP is less than MP.
The law of ________ refers to a consumer's decrease in additional satisfaction as she consumes more and more units of a good.
A. infinite demand B. utility maximization C. diminishing marginal utility D. consumer choice