The purpose of an effluent fee is to
A. reward people producing externalities.
B. correct for pollution while keeping the price of the good the same as before the correction.
C. reduce the amount produced of a good and to raise the market price.
D. encourage producers to keep the quantity produced the same while lowering the price.
Answer: C
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When a firm produces 50,000 units of output, its total cost equals $6.5 million. When it increases its production to 70,000 units of output, its total cost increases to $9.4 million. Within this range, the marginal cost of an additional unit of output is
A) $41.43. B) $134.29. C) $135. D) $145.
Over the past couple of years, prices for personal computers have fallen dramatically, but suppliers have offered more and more of them for sale. Does this refute the law of supply? Explain
When regulators identify with the special interests of the industry they regulate, this behavior conforms with the
A) share-the-gains, share-the-pains hypothesis. B) rate-of-return hypothesis. C) lemon market hypothesis. D) capture hypothesis.
A utility function is:
A. an equation for calculating the total utility that a group of people derive from consuming a particular good. B. an equation for calculating the total utility that a particular person derives from consuming a particular combination of goods and services. C. an equation for calculating the total utility that a particular person derives from consuming a particular good over a particular time period. D. an equation for calculating the most utility a particular person can derive.