If the marginal cost of pollution abatement is smaller for large firms than it is for small firms, then it is efficient for:
A. small firms and large firms to increase pollution by a fixed proportion.
B. small firms and large firms to reduce pollution by a fixed proportion.
C. small firms to reduce pollution by more than large firms.
D. large firms to reduce pollution by more than small firms.
Answer: D
You might also like to view...
As a method of resource allocation, force
A) is not important. B) plays a crucial negative role. C) plays a crucial positive role. D) plays a crucial role for both good and ill.
Refer to Table 4-8. If a minimum wage of $10.00 an hour is mandated, what is the quantity of labor demanded?
A) 390,000 B) 370,000 C) 350,000 D) 40,000
Suppose there are 1000 identical wheat farmers. For each, TC = 10 + q2. Market demand is Q = 600,000 – 100p. Derive the short-run equilibrium Q, q, and p. Does the typical firm earn a short-run profit?
What will be an ideal response?
In long-run equilibrium,
a. perfectly competitive firms in a decreasing-cost industry can earn economic profits b. perfectly competitive firms in an increasing-cost industry can earn economic profits c. perfectly competitive firms in a constant-cost industry can earn economic profits d. perfectly competitive firms can earn only normal profits e. no entry occurs in an increasing-cost perfectly competitive industry