Suppose Factory A emits 15,000 units of "Yuck" monthly, Factory B emits 30,000 units, and Factory C emits 45,000 units. Also suppose A's cost of reducing the emission is $1 per unit, B's cost is $2 per unit, and C's cost is $3 per unit
If the EPA prohibits any factory from emitting more than 15,000 units of yuck per month, what would be the total cleanup cost? A) $15,000
B) $40,000
C) $45,000
D) $90,000
E) $120,000
E
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Inflation is a rise in
A. the general level of prices over time. B. unemployment over time. C. real GDP over time. D. the standard of living over time.
A decrease in expected profit
A) lowers the equilibrium real interest rate. B) decreases the supply of loanable funds. C) increases the supply of loanable funds. D) increases the demand for loanable funds. E) raises the equilibrium real interest rate.
How do we calculate average fixed cost and why does average fixed cost fall as output increases?
What will be an ideal response?
The most commonly used tool by the Federal Reserve to control the monetary base is
a. changes in the discount rate. b. changes in tax rates on commercial banks. c. changes in legal required reserve ratios. d. open market operations.