Refer to the above figure. Suppose the marginal benefit and the marginal cost curves of pollution abatement are normally shaped. Technological change that made it easier to produce in a "cleaner" fashion would cause
A) curve (4 ) to shift out, increasing the optimal amount of pollution abatement.
B) curve (3 ) to shift up, raising the marginal benefits and costs and reducing the amount of pollution abatement.
C) curve (2 ) to shift out, increasing the optimal amount of pollution abatement.
D) curve (1 ) to shift out, increasing the optimal amount of pollution abatement.
C
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U.S. households wishing to purchase shares of stock in a European company are ________ the foreign exchange market.
A. suppliers of U.S. dollars in B. suppliers of Euros in C. demanders of U.S. dollars in D. supplied Euros by the Fed for use in
Which of the following is true with regard to value and exchange?
a. Exchange generally moves a good from a person who values it more to a person who values it less. b. Transaction costs reduce our ability to gain from potentially advantageous trades. c. Middlemen increase transaction costs and, thereby, reduce the potential gains derived from trade. d. Physical goods have an objective value that is unrelated to time and the person of ownership.
The average-total-cost curve is unaffected by diminishing marginal product
a. True b. False Indicate whether the statement is true or false
A firm is employing inputs such that the marginal product of labor is 25 and the marginal product of capital is 40. The price of labor is $5 and the price of capital is $8. If the firm wants to minimize costs, then it should:
A. Use more labor and less capital B. Use less labor and less capital C. Use less labor and more capital D. Make no change in resource use