A subsidy to firms intended to reduce pollution in an industry would
a. shift the LRAC curve upward.
b. have the same impact on the firm as a tax.
c. likely drive some existing firms from the industry.
d. likely have the paradoxical effect of increasing pollution in the industry in the long run.
d
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Refer to the scenario above. In the dominant strategy equilibrium, the payoff to Firm A is ________
A) $1.2 million B) $3.0 million C) $3.5 million D) $2.5 million
What is rent seeking and how is it related to regulatory capture?
What will be an ideal response?
The aggregate demand curve is downward sloping because a higher inflation rate leads the central bank to ________ real interest rates, thereby ________ the level of equilibrium aggregate output., everything else held constant
A) raise; lowering B) raise; raising C) reduce; lowering D) reduce; raising
If the economy is suffering a recession, inventories are probably falling
a. True b. False Indicate whether the statement is true or false