If pollutants emitted by firms in the steel industry increase, but there is no increase in the costs borne by these firms, you could conclude that
a. pollution is not a serious problem in this industry.
b. the consumers of steel are unwilling to bear the costs of pollution generated from steel production.
c. pollution is an externality in this market, since producers and purchasers of steel do not bear the full costs of the pollution.
d. pollution creates an external benefit rather than an external cost in this case.
C
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When interest rates rise, the price of bonds:
(a) Increases (b) Decreases (c) Stays the same (d) can be determined.
As the price of ballpoint pens increases, the demand for felt-tip pens can be expected to decrease
a. True b. False
Which of the following statements is true?
A. TC = TFC ? TVC B. AVC = TC / Q C. TFC = TC ? TVC D. MC equals the change in ATC divided by the change in Q.
Refer to the diagram, assuming that the firm represented is operating on curve TC 1 . If the current price of the resource rises by $20, the optimal quantity extracted in the first year will:
A. increase by 250.
B. increase by 500.
C. decline by 250.
D. remain unchanged.