As long as two firms have different abatement costs, they:
A. can benefit under a system of marketable pollution permits by trading the right to pollute.
B. will prefer a pollution tax to a system of marketable pollution permits.
C. will decrease the price of their product if taxed on the amount of pollution they emit.
D. will not be able to benefit from trading the right to pollute under a system of marketable pollution permits.
Answer: A
You might also like to view...
In bringing an economy out of a recession, a government will often resort to ________ fiscal policies, which often results in budget deficits
A) conservative B) innovative C) contractionary D) expansionary
Refer to Figure 2-12. What is the opportunity cost of producing one gallon of honey in Tahiti?
A) 1 1/3 gallons of milk B) 0.9 gallons of milk C) 5/6 of a gallon of milk D) 1.2 gallons of milk
In the sequential version of a game using the same players, the same strategies, and the same possible outcomes as the original game, the equilibrium
A) may be different than in the original game. B) must be different than in the original game. C) will be the same as in the original game. D) is the same as the cooperative version of the original game. E) is the same as the noncooperative version of the original game.
Which of the following will lead to an oligopoly?
a. If the quantity demanded in the market for cell phones is equal to the quantity produced by the largest firm at the minimum point of its long-run average total cost curve b. If the quantity demanded in the market for oil tankers is three times the quantity produced by the largest firm at the minimum point of its long-run average total cost curve c. If the quantity demanded in the market for oil tankers is thirty times the quantity produced by the largest firm at the minimum point of its long-run average total cost curve d. If the quantity demanded in the market for oil tankers is half the quantity produced by the largest firm at the minimum point of its long-run average total cost curve