Suppose Jones's company and Smith's company both pollute. Under a system of marketable pollution permits, which of the following must be true in order for Smith and Jones to benefit from trading the right to pollute?
A. Smith and Jones must be able to reduce pollution at exactly the same cost.
B. Smith and Jones must have different abatement costs.
C. Smith and Jones must have a social conscience and must be devoted to pollution abatement.
D. The government must direct Smith and Jones toward beneficial trades.
Answer: B
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For a long time, your firm has been paying its workers a wage of $20 per hour and your employees have been happy to work 40 hours per week at this wage
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Indicate whether the statement is true or false
James used $200,000 from his savings account that paid an annual interest of 10% to purchase a hardware store. After one year, James sold the business for 300,000 . His accounting profit is:
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