For society as a whole, the optimal amount of pollution control exists when:
a. the marginal cost of pollution reduction is equal to the marginal benefit of the pollution reduction.
b. firms are allowed to produce as much pollution as necessary to make the goods people want.
c. the marginal costs of pollution clean up exceed the benefits
d. no pollution is permitted at all.
a
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Use the following graph to answer the next question.
If the equilibrium interest rate is 4%, the supply of money must be
A. $100 billion. B. $150 billion. C. $200 billion. D. $250 billion.
Refer to Figure 15-6. The monopolist earns a profit of
A) $0. B) $170. C) $248. D) $372.
Suppose that a professional photographer takes a prize-winning digital photo. She can sell a 5"x7" color print of the photo for $10 . She can also sell the digital file for $20 . There are 500 people willing to buy the color print and 2,000 people willing to buy the digital file. Assume the costs to the photographer are zero and that the people who purchase the digital file cannot resell the file
itself or any prints made from it. What should she do in order to maximize her profits? a. earn $5,000 by selling only the color prints b. earn $40,000 by selling only the digital files c. earn $45,000 by selling both the color prints and the digital files at their respective prices d. We do not have enough information with which to answer this question.
Which function of money allows people to specialize in areas in which they have a comparative advantage?
A. unit of accounting B. standard of deferred payment C. medium of exchange D. store of value