When faced with a marginal effluent fee (MEF), each polluting source will
a. abate up to the point where its total abatement cost (TAC) equals the MEF
b. abate nothing and pay the MEF on all units of pollution released
c. clean up pollution as long as its marginal abatement cost is lower than the MEF
d. reduce its effluents to zero to avoid paying the effluent fee
c. clean up pollution as long as its marginal abatement cost is lower than the MEF
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Stagflation caused by a negative supply shock makes macroeconomic policy very difficult; trying to reduce the size of a recession caused by the shock leads to a higher price level
a. True b. False Indicate whether the statement is true or false
When an employee at a grocery store scans the price of your items, bags the groceries, and collects your paper, the individual has provided
A) physical capital. B) entrepreneurship. C) a service. D) land.
The marginal social cost of a chemical is $100 per ton and its marginal private cost is $85 per ton. What is the marginal external cost of the chemical?
What will be an ideal response?
Refer to Scenario 14.2. If each unit of output sells for $5, how many days of labor will the firm hire to maximize profit?
A) 1 B) 2 C) 3 D) 4 E) 5