In some cases, selling pollution permits is a better method for reducing pollution than imposing a corrective tax because
a. it is hard to estimate the market demand curve and thus charge the "right" corrective tax.
b. selling pollution permits create a net increase in pollution.
c. Corrective taxes distort incentives.
d. Corrective taxes provide greater flexibility to firms that can reduce pollution at a low cost.
a
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In a competitive industry, each firm has a cost function 
(for a given set of input prices). Demand for the industry's output is 
. The (long run) equilibrium number of firms is
A. 120 B. 58 C. 46 D. 34 E. 29 F. 12 G. 2 H. None of the above
The price of one good changes and Sue is now at a point on her indifference curve where the marginal rate of substitution exceeds the relative price. Sue will now choose to buy ________ of the good that is measured on the ________
A) more; x-axis B) more; y-axis C) the same quantity; x-axis D) less; x-axis
When costs that vary with the level of output are divided by the output, you have calculated
a. total changing cost. b. total fixed cost. c. average fixed cost. d. average variable cost.
The true cost of borrowing is the nominal interest rate
Indicate whether the statement is true or false