Refer to the scenario above. What is the payoff to Firm A in equilibrium?
A) $2.4 million
B) $2.6 million
C) $5.2 million
D) $3.0 million
C
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Economists generally favor the use of tradable emission allowances to reduce pollution. However, the use of these allowances has been criticized by some environmentalists. Which of the following describes this criticism?
A) Some environmentalists believe that Pigovian taxes are a more efficient way to reduce pollution. B) Some environmentalists oppose allowances on legal grounds; they believe the use of allowances is unconstitutional. C) Some environmentalists believe that the price of allowances is often too high for consumers to afford. D) Some environmentalists believe the allowances give firms a license to pollute.
In the short run, an increase in the money supply is likely to lead to ______ inflation and ______ unemployment
Fill in the blank(s) with correct word
A golf course in Fargo, North Dakota — where it is very cold in the winter — is closed between November 1 and April 1 . If the owner of the golf course is rational, what criterion does he or she use in deciding to close the course for this extended period of time?
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline