What is the economic rule for the efficient amount of pollution?
What will be an ideal response?
It is efficient to reduce pollution up until the marginal benefit from reducing the pollution equals the marginal cost of abatement.
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Which of the following is ALWAYS true when a single-price monopolist maximizes its profit?
A) P = MC B) P = MR C) MR = MC D) MC = ATC E) P > ATC
An elastic demand is one in which the elasticity is greater than:
a. two. b. four. c. one. d. three.
What type of business has been created when one firm is able to supply the total quantity demanded in a market at lower costs than two or more firms could produce?
a. Natural monopoly b. Artificial monopoly c. Anti-trust monopoly d. Regulatory monopoly
In competitive industries, firms that innovate can expect to make no profit in the short run
Indicate whether the statement is true or false