Figure 16.1A firm that generates pollution is illustrated in Figure 16.1. If the government imposes a pollution tax equal to P1, the marginal benefit to the firm of abating A2 is:
A. P1.
B. P2.
C. P1 - P2.
D. P2 - P3.
Answer: A
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Is the relationship between advertising and the number of games sold positive, negative, or neither? Explain your answer.
Excess demand results in a surplus.
Answer the following statement true (T) or false (F)
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