A firm that responds to a regulatory rule in a way that permits technical compliance while allowing the firm to violate the spirit of the regulation has
A) reduced the scope of the lemons problem.
B) shared the gains and pains of regulation.
C) engaged in a creative response to regulation.
D) become a captured regulator.
C
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Give an example where a government subsidy can correct an externality. Explain how the subsidy would lead to a more efficient outcome
What will be an ideal response?
If a firm had a fixed proportions technology, then the pollution produced by this firm
A) cannot be reduced. B) can be reduced only by lowering the level of output (holding technology constant). C) can be reduced by changing how the output is produced within the bounds of the existing technology. D) can be reduced only by increasing the number of firms in the industry. E) can be reduced only by changing the technology.
In November 1995 the labor force in Aberdeen, South Dakota, was 14,800 . There were 14,483 persons employed. The local unemployment rate:
a. was 1.2 percent. b. was 2.1 percent. c. was 5.6 percent. d. was 7.1 percent.
To be a natural monopoly, a firm must
A. control an essential natural resource input. B. be very large. C. have a continuously falling average cost curve as output rises. D. have falling average costs over a substantial range of total market demand.