What is the purpose of a pollution tax?
What will be an ideal response?
The purpose of a pollution tax is to make the firm fully realize the costs it imposes on society. That is, to make the firm internalize the external costs imposed on society by its production.
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If marginal product is equal to average product, then total product is at a maximum
Indicate whether the statement is true or false
Which of the following is not characteristic of perfect competition?
a. many buyers and sellers b. brand name advertising c. standardized products d. fully informed buyers and sellers e. free entry and exit of firms
Since World War II, tariff reductions have occurred in large part because of negotiations under the:
a. Industry and Trade Administration Act. b. Employment Act. c. Monetary Control Act. d. General Agreement on Tariffs and Trade.
In the 2000 decision on the Microsoft antitrust case, the eventual remedy involved a:
A. Change in the business practices of Microsoft B. Merging of Microsoft with another company C. Breakup of Microsoft into smaller firms D. Takeover of Microsoft by the government