In which of the following situations should a firm reduce its efforts to abate pollution?
A. The marginal benefit of abatement is less than its marginal cost.
B. The marginal benefit of abatement is greater than its marginal cost.
C. The marginal benefit of abatement is equal to its marginal cost.
D. None of these
Answer: A
You might also like to view...
The table above gives the demand for a monopolist's output. Between which two quantities is demand elastic?
A) 6 and 5 B) 5 and 4 C) 4 and 3 D) 3 and 2
If actual real GDP is greater than the equilibrium level of real GDP (i.e., the aggregate expenditures function is below the 45-degree line), what happens to restore equilibrium to the economy?
The principle that the cost of something is equal to what is sacrificed to get it is known as the
A. principle of opportunity cost. B. marginal principle. C. reality principle. D. principle of diminishing returns.
The Kuznets cycle, named for Nobel Laureate Simon Kuznets who developed this business cycle theory, focuses on
a. the climatic cycles caused by movements in the solar system b. the impact of war activity on the economy c. housing construction d. the clustering of innovations e. the interaction of the multiplier and the accelerator