The following table shows four firms, the amount each pollutes, the marginal cost for each firm to clean up pollution, and the total cost to each firm of eliminating all pollution.FirmTotal Discharge (in tons)Marginal Cost of Cleanup(per ton)Total Cost of CleanupA60$5.00$300B70$8.00$560C80$7.50$600D90$4.00$360The total discharge of these four companies is 300 tons. Assume there is no one else who pollutes. If the government establishes an effluent fee of $7.00 per ton, how much would the firms spend on reducing pollution?
A. $2,100
B. $660
C. $1,820
D. $1,710
Answer: B
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Economists deduce the value people place on their own lives by looking at what people will pay to reduce the probability of death.
Answer the following statement true (T) or false (F)
Suppose that opportunity costs are constant and that Gorge can either bake a maximum of six pies or three cakes in a day. Brandi can either produce a maximum of eight pies or two cakes in a day. Gorge's opportunity cost to produce one cake is
A. one-half pie. B. four pies. C. six pies. D. two pies.
Bob is unemployed if he
A. has looked for a job for two months and then quit looking. B. is not looking for a job. C. is temporarily absent. D. A and C are correct.
Mel's House of Cars is an automobile dealership that sells both new and used cars. Two other dealerships located near Mel's pay their salespeople a straight salary - they receive no commission for each car they sell
Mel has decided to pay all of his salespeople a commission on all car sales. Which of the following is most likely to occur as a result of Mel's decision? A) Mel will experience a principal-agent problem. Some of his salespeople will tend to shirk because they will not be paid if they sell no cars, regardless of how hard they work. B) Mel will be able to hire some of the most productive salespeople who work for the other two dealerships. C) Mel risks violation of federal law that regulates firms' compensation policies. D) Mel will have difficulty finding salespeople. Research by labor economists has found that most employees prefer the security of a salary to the uncertainty of being paid based on how much revenue they generate for their employers.