From an economic standpoint, the amount of pollution should be
A) zero.
B) the amount that allows firms to maximize profits.
C) the amount where firms are earning a normal rate of return on investment.
D) at the point at which the marginal benefit from further reduction equals the marginal cost of further reduction.
D
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The United States chooses to have ________ and ________ and therefore, cannot have a fixed exchange rate at the same time
A) capital control; an independent monetary policy B) free capital mobility; an independent monetary policy C) free capital mobility; no control of monetary policy D) capital control; no control of monetary policy
"Information problematic" borrowers must usually go the __________ finance route and issue __________ securities
A) direct; traded B) direct; nontraded C) indirect; traded D) indirect; nontraded
If the marginal physical product (MPP) of labor is 60 and the price of labor per period is $20, the MPP of machinery is 75 and the price of the machinery per period is $25, in order to achieve optimal input proportions the firm should use
a. more labor and less machinery. b. more machinery and less labor. c. more labor with the same amount of machinery. d. the current combination.
The purpose of an effluent fee imposed on a firm is
A. to increase output of its product by reducing the resources allocated to production. B. to increase output of its product by increasing the resources allocated to production. C. to reduce output by increasing production costs thereby reducing resources used. D. None of these