If markets are perfectly competitive and production of a good results in water pollution, the imposition of a tax on the good will:
A. reduce the number of firms producing that good in the long run.
B. reduce the number of firms producing that good in the short run.
C. increase the number of firms producing that good in the long run.
D. increase the number of firms producing that good in the short run.
Answer: A
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Krystal runs a nail salon and needs to decide how many hours to stay open. Table 2.2 illustrates her marginal costs of staying open for each additional hour. Suppose that Krystal's marginal benefit of staying open per hour is $18
If she is following the marginal principle, how many hours should Krystal stay open? A) 3 hours B) 4 hours C) 6 hours D) 7 hours
A firm produces leather handbags and leather shoes. If there are economies of scope, the product transformation curve between handbags and shoes will be
A) a straight line. B) bowed outward (concave). C) bowed inward (convex). D) a rectangle.
Which of the following statements is true about revenue?
A) Revenue is the total amount received for selling a good or service. B) Revenue is calculated by dividing the price per unit by the number of units sold. C) The terms "revenue" and "profit" can be used interchangeably. D) A firm's revenue will increase as its costs increase.
Explain the Median Voter Theorem
What will be an ideal response?