If a manufacturer does not have to pay for its contribution to pollution, it will produce
A. Inefficiently from a private viewpoint.
B. Too much output from a social viewpoint.
C. Unprofitably from a private viewpoint.
D. At a price that is too high from a social viewpoint.
Answer: B
You might also like to view...
Consider two individuals, Wendy and Jenny, who discount delayed utilities with a weight of 1/4 and 7/8, respectively. Consuming one hamburger gives both Wendy and Jenny benefits worth 16 utils instantly and has delayed costs of 20 utils
a) If the nearby hamburger shop is closed for a week, comment on whether both individuals will consume hamburgers after a week. b) If a new shop is opened nearby, and hamburgers are available for consumption today, comment on whether both individuals will consume hamburgers.
A sum of money received at a future date
A. is worth less than the same sum of money received today. B. is worth more than the same sum of money received today. C. has the same value as the same sum of money received today. D. is worth less than the same sum of money received yesterday.
Johnny's Shop-and-Pay is a regional grocery chain, and their marketing manager is trying to determine the profit-maximizing coupon program for the store's laundry detergent brand
Coupon users at the store have an elasticity of demand for this product that equals -3, and the elasticity of demand for non-users of the coupon for the store brand equals -1.5. If the full retail (undiscounted) price of the detergent is $10 per box, what is the optimal discount to provide for coupon users? A) 25% off B) 50% off C) 75% off D) The optimal strategy is to charge the same price to both groups
In the U.S. over the past century, increases in labor
a. supply have outpaced increases in labor demand, causing the average wage rate to fall b. supply have outpaced increases in labor demand, causing the average wage rate to rise c. demand have outpaced increases in labor supply, causing the average wage rate to fall d. demand have outpaced increases in labor supply, causing the average wage rate to rise e. demand have occurred at the same pace as increases in labor supply, so the average wage rate has remained unchanged