The figure above shows the costs associated with producing paper. When paper is produced, there is some pollution runoff into a lake. The marginal private cost when output equals 2 tons of paper per week equals
A) $50 per ton
B) $100 per ton.
C) $150 per ton.
D) None of the above answers is correct.
A
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Gross investment is equal to
A) depreciation minus net investment. B) net investment plus capital stock. C) depreciation plus net investment. D) net investment minus capital stock.
A multi-plant firm has three plants and, at its current production levels, the marginal cost of production at each of the three plants is $3. If the firm is perfectly competitive and the market price of its product is $9, which of the following is true?
A) The firm is producing the profit-maximizing total output. B) The firm should exactly triple output in each of the plants to maximize profit. C) The firm should increase output at each of the plants to maximize profit. D) The firm should decrease output at each of the plants to maximize profit.
A payment for a resource above the opportunity cost of the resource is
A) economic rent. B) social rent. C) nominal rent. D) real rent.
Which of the following is likely to dampen economic fluctuations in a country?
a. A regressive income tax b. An increase in tax rates c. A decrease in tax rates d. An increase in money supply e. Unemployment insurance