The optimal rate of pollution will be attained when the total benefits received by lowering the pollution level are equal to the total costs that must be incurred to achieve it.
Answer the following statement true (T) or false (F)
False
The optimal rate of pollution is the rate of pollution that occurs when the marginal social benefit of pollution control equals its marginal social cost.
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Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.30 per minute. If Always There Wireless charges the highest fixed fee that it can without losing the low-demand consumers, what is the profit from sales to each of the low-demand consumers?
B. $24.50 C. $33.00 D. $28.13
If a firm sells more than the break-even quantity,
a. It will make a profit b. It will only cover the variable costs c. It will make a loss d. A firm is unable to sell above the break-even quantity
In the case of a technology spillover, the government can encourage firms to internalize a positive externality by
a. taxing production, which would decrease supply. b. taxing production, which would increase supply. c. subsidizing production, which would decrease supply. d. subsidizing production, which would increase supply.
When measuring the risk of an asset:
A. one cannot use other investments to evaluate the asset's risk. B. it is necessary to incorporate uncertainties that are not quantifiable. C. one must remember that the concept of risk applies only to financial markets, not to financial intermediaries. D. one must measure the uncertainty about the size of future payoffs.