Firms are likely to prefer a pollution tax to a command-and-control policy because the command-and-control policy will:
A. increase the costs of production more than a pollution tax.
B. result in the price of the good rising more than under a pollution tax.
C. result in consumers buying less of the good than under a pollution tax.
D. All of these
Answer: D
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A) increasing marginal returns B) diseconomies of scale C) economies of scale D) random luck E) decreasing cost of marginal returns
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a. economizing. b. entrepreneurship. c. value judgment. d. product sensitivity.
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a. protect small businesses. b. protect the competitiveness of U.S. markets. c. protect the prices of American-made products. d. ensure firms earn only a fair profit.
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A. normal B. inferior C. complementary D. substitute