From an economic perspective, the socially best amount of pollution control is that amount in which:
a. there is zero pollution.
b. the private plus external marginal costs are equal to the private plus external marginal benefits.
c. the private plus external marginal costs are less than the private plus external marginal benefits.
d. the private marginal costs are equal to the private marginal benefits.
e. the external costs equal the external benefits.
b
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Use the figure below to answer the following question.
What area represents society's total surplus after the government imposes the excise tax on the market?
A. triangle $1c$9 plus triangle $21a$13 B. triangle abc C. square $13ac$9 plus triangle abc D. triangle $1c$9 plus triangle $21a$13 plus rectangle $13ac$9
The figure above illustrates the marginal private cost and the marginal social cost to the city of Seattle for each rock concert that is offered. At 10 concerts, the
A) marginal private cost equals the marginal external cost. B) marginal social cost equals $60,000. C) marginal private cost is more than $40,000. D) marginal external cost equals $60,000. E) marginal external cost equals $80,000.
Refer to the above figure. Suppose that Cheerios and Apple Jacks are substitutes. Which diagram shows the effect on the demand for Cheerios when the price of Apple Jacks cereal has increased?
A) A B) B C) neither graph D) both graphs
It has been suggested that if NHL hockey teams would lower ticket prices, they could increase revenue from ticket sales. Which of the following assumptions forms the basis for this suggestion?
a. Both d and e are correct. b. All of the following are correct. c. Demand for NHL hockey is income inelastic. d. Demand for NHL hockey is price elastic. e. There are many substitutes for NHL hockey.