Suppose that a powerplant is given a permit to pollute 10 tons of carbon into the atmosphere. As the powerplant operates, it can generate $200 of profit selling electricity per ton of carbon that it sends into the atmosphere. If the price of the carbon permit is $300 per ton, then:
A. the powerplant is better off shutting down and selling its permit.
B. the powerplant is better off buying more permits and selling more electricity.
C. the powerplant is better off selling electricity and using the permits to pollute 10 tons of carbon.
D. the powerplant is better off shutting down and buying more permits.
Answer: A
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The distribution of income in the United States is skewed so that the mode level of household income is ________ the median household income and the median household income is ________ than the mean household income
A) less than; less than B) less than; greater than C) greater than; greater than D) greater than; less than
European banks began with which of the following?
A. Monarchs were the first bankers, lending out cash to help the poor learn a craft. B. Churches were the first bankers, lending out cash to help the poor learn a craft. C. Goldsmiths were the first bankers, and the paper receipts they issued for gold held on deposit became valued as money. D. Fishermen were the first bankers, and the paper receipts they issued for the fish they stored in the hulls of their ships became valued as money.
The price of a new textbook increased from $100 to $120 in one year, while the price of a used textbook increased by 20 percent. What happened to the relative price of a used textbook?
A) It decreased by 25 percent. B) It increased by 20 percent. C) It remained constant. D) It can't be determined without knowing the nominal price of the used textbook in at least one of the years.
What is price discrimination? Can a perfectly competitive firm price discriminate? Explain you answer
What will be an ideal response?