The figure below represents the marginal cost of abatement for two firms. If a tax of $4 per unit of pollution were placed on the firms, the total amount of pollution that the two firms would reduce would be
A) 9 units. B) 8 units. C) 6 units. D) 7 units.
Answer: D
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If buyers compete against sellers, then
A) buyers would be worse off as more sellers enter the market. B) buyers would be better off with fewer sellers in the market. C) sellers would be worse off with more buyers for their products. D) sellers would be better off with fewer buyers of their products. E) all the above are true.
Refer to Figure 4.2. A shift from D1 to D2 will result from which of the following?
A) an increase in expected future profits B) an increase in corporate taxes C) an increase in tax credits for savings D) a decrease in the desire of households to consume today
The only types of firms that cannot theoretically practice price discrimination are perfectly competitive firms
a. True b. False Indicate whether the statement is true or false
Bob's Baubles, Inc, sells its product for $3 each in a perfectly competitive market. If it increases its workforce from 1,000 to 1,001, its output goes from 615 to 625 per day. Its marginal revenue product for the 1,001st worker is: a. $3
b. $1, 845. c. $30. d. $3,003.