Suppose the government issues a limited number of pollution permits in order to limit the quantity of pollution. Under this policy, does the demand curve for pollution rights determine the quantity of pollution, or does it determine the price of pollution?
With pollution permits, the demand curve for pollution rights determines the price of pollution.
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Using the above table, if the price of Pepsi is $3, how many cans of Pepsi would have to be consumed in order to have a marginal utility to price ratio of 3?
A) one can
B) two cans
C) three cans
D) four cans
How long is the long run?
A. A defined, set period of time, usually a year B. However long it would take a firm to vary all of its costs C. However long it would take a firm to have at least one variable cost D. None of these defines the long run.
In an inverse relationship
A. the two variables has not related to each other. B. both variables fall together. C. both variables rise together. D. one variable rises while the other falls.
Answer the following questions true (T) or false (F)
1. Corporations are legally owned by their shareholders. 2. Corporate managers and shareholders always have the same goals. 3. When a business is set up as a partnership, the owners of the business face limited liability.