When the government uses a cap-and-trade approach in dealing with pollution, it
A) uses taxes in order to internalize the externalities caused by the pollution.
B) imposes quantitative limits on the amount of pollution firms are allowed to generate.
C) uses subsidies to encourage firms to use new technology that reduces pollution.
D) distributes information to consumers and producers on how to reduce pollution.
B
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John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the table below:Hours PerDay CleaningWindowsTotal Numberof WindowsCleaned0017211314416517If we plot John's opportunity cost per window on the vertical axis and the number of windows cleaned each day on the horizontal axis, we will have John's ________ curve for window-cleaning services.
A. supply B. benefit C. production possibilities D. demand
Complete the following table
Energy Drinks Consumed per Week Price (P) Total Revenue (TR) Average Revenue (AR) Marginal Revenue (MR) 0 $6.00 1 5.50 2 5.00 3 4.50 4 4.00 5 3.50 6 3.00 7 2.50 8 2.00
If Jet Cruises chooses to No Ad and Easy Sail then chooses to No Ad, Jet Cruises earns ________ million in net profit and Easy Sail earns ________ million.
Jet Cruises wants to prevent Easy Sail from entering the sailboat market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Jet Cruises and Easy Sail have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) $5; $2 B) $2; $4 C) $4; $3 D) $10; $2
In this case, the abatement level associated with benefit-based standards would be:
Suppose that the costs and benefits of achieving water quality in New York are modeled as shown below. Use these relationships for any or all of questions 14 through 16. MSB = 80 – 2A MSC = 20 + 2A TSB = 80A – A2 TSC = 20A + A2, where A is the abatement level for conventional pollutants. a. 40 c. 10 b. 15 d. none of the above