A completely successful emission charge would
A. Not shift either the private or social MC curve.
B. Shift the private MC curve to the same position as the social MC curve.
C. Shift the social MC curve to the same position as the private MC curve.
D. Shift the private MC curve until the curve intersects with price at zero output and pollution is completely eliminated.
Answer: B
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Answer the following statement(s) true (T) or false (F)
1. In the long run, a competitive firm that experiences decreasing returns must earn negative profits after all factor shares are paid out. 2. Factors that are supplied relatively inelastically earn more rents than those supplied more elastically. 3. Both the competitive firm's demand curve for labor and the monopoly firm's demand curve for labor always slope downwards. 4. When production is subject to increasing returns to scale profit will be positive. 5. If demand for output rises, producers' surplus increases more for factors with elastic supply curves than for other factors.
McDonald's partnership with Beijing's Department of Agriculture provided:
A) McDonald's with subsidies , suppliers, and distributional channels. B) McDonald's with just subsidies. C) McDonald's with just distributional channels. D) all of the above.
Generally, as a movie theater adds more screens its average costs fall. The movie theater can be said to experience
a. declining profit b. higher prices c. diseconomies of scale d. economies of scale e. diminishing marginal returns
After much anticipation a company releases a new smartphone. The smartphone doesn't work as well as expected and lacks many of the features buyers had been expecting. The unexpectedly negative reaction to the smartphone would
a. raise the present value and the price of the corporation's stock. b. raise the present value and reduce the price of the corporation's stock. c. reduce the present value and the price of the corporation's stock. d. reduce the present value and raise the price of the corporation's stock.