The option holder is:
A. the buyer of an option.
B. always a speculator.
C. another name for the clearinghouse used in futures contracts.
D. the seller of an option.
Answer: A
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The more inelastic the schedule, the greater the percentage of the tax that is borne on the other side of the market
a. True b. False
If X transferable emissions permits are issued and there are n potential polluters,
A) the government must initially assign each of the potential polluters X/n permits. B) the government must assign X/n permits to each potential polluter and check periodically that those permits have not moved. C) emissions will be the same whether or not the permits are split equally, so long as none of the permits are issued outside the group. D) emissions will be the same no matter who receives them first, so long as the recipient is willing and able to participate in the permit market. E) emissions will be less if the permits are given initially to firms with lower abatement costs.
The fundamental rule of profit maximization is for the firm to produce where
a. MR = MC b. ATC is minimized c. quantity of output is maximized d. it is most efficient e. total revenue is maximized
The primary purpose of antitrust legislation is to
a. protect small businesses. b. protect the competitiveness of U.S. markets. c. protect the prices of American-made products. d. ensure firms earn only a fair profit.