Refer to Scenario 16.1 below to answer the question(s) that follow. SCENARIO 16.1: The marginal benefit for a particular food is described by MB = 30 - q, where q refers to the quantity of the food. The marginal cost of producing the food is described by MC = 2q. There is a negative externality associated with food production and the marginal social cost of food production is MSC = 4q.Refer to Scenario 16.1. The efficient output level is ________ and the efficient price is ________.
A. 6 units of food; $24
B. 0 units of food; $0
C. 10 units of food; $20
D. 4.29 units of food; $25.71
Answer: A
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Changes in the macro environment affect individual firms and industries through the microeconomic factors of demand, production, cost, and profitability
Indicate whether the statement is true or false
Which basic approach to environment policy may be the only workable solution in brief but serious emergencies that do not allow for time to plan and enact a systematic program?
A. Taxes on pollution B. Voluntary compliance C. Tradable emissions permits D. Direct controls like legal ceilings
Which of the following best explains why the behavior of an individual firm in an oligopoly is difficult to predict?
a. Each firm is interdependent. b. Each firm is a perfect competitor. c. There are a large number of firms. d. The price follower is difficult to identify.