In the presence of pollution, social welfare is maximized by
A) reducing output and pollution until marginal benefit of less pollution is equal to the marginal cost of less output.
B) reducing output and pollution until the benefit curve (of less pollution) and cost curve (of less output) intersect.
C) reducing output and pollution until the benefits of pollution reduction just cover the costs of output reduction.
D) None of the above.
A
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Multinational businesses produce and sell goods around the world.
Answer the following statement true (T) or false (F)
Along its long-run total cost curve, a firm is producing
a. at the output level for each plant size that has the lowest cost b. at the minimum points of its various total cost curves c. each level of output using the input mix that has the lowest cost d. each level of output using the fewest possible inputs e. at the output level for each plant size that uses the fewest possible inputs
The demand schedule for a good
a. indicates the relationship between the price of the good and the price of other goods. b. indicates the quantities of the good that people will buy at various prices. c. illustrates the quantity producers will provide at alternative prices. d. is determined primarily by the cost of producing the good.
The bond rating of a security reflects the:
A. size of the coupon rate relative to other interest rates. B. likelihood the lender/borrower will be repaid by the borrower/issuer. C. size of the coupon payment relative to the face value. D. return a holder is likely to receive.