Firm A and Firm B emit 300 tons of pollution each and each have marketable permits that allow each to emit 100 tons of pollution
If it costs $5,000 for Firm A to eliminate 100 tons of pollution and it costs Firm B $6,000 to eliminate 100 tons of pollution, then A) Firm B sells its permits to Firm A for a price above $6,000.
B) Firm A sells its permits to Firm B for a price below $6,000.
C) Firm A sells its permits to Firm B for a price above $6,000.
D) Firm B sells its permits to Firm A for a price below $6,000.
E) Neither Firm A nor Firm B sells permits because neither has extra permits.
B
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A newspaper reports that the average price of new homes in a certain city had decreased, and the number of new homes sold had also decreased. This situation is probably caused by
A. higher government subsidies to new homebuyers in that city. B. a rising population in that city. C. decreasing incomes of people in that city. D. decreasing costs of construction materials and services in that city.
The marginal cost of hiring the 7th worker is
a. $400 b. $1000 c. $200 d. $0
A technological innovation that reduces a firm's cost of producing additional units of output will lead to:
A. an increase in the quantity supplied by the firm, but no change in the firm's supply. B. a decrease in the firm's supply. C. an increase in the firm's supply. D. a decrease in the quantity supplied by the firm, but no change in the firm's supply.
Fire protection and police protection may be provided more efficiently by the private sector than by the public sector.
Answer the following statement true (T) or false (F)