If companies that were creating pollution had to pay the social cost of production, they would want to supply:
A. the same amount at any given price.
B. the same amount at the equilibrium price.
C. less at any given price.
D. more at any given price.
Answer: C
You might also like to view...
When Janet Yellen, Chair of the Federal Reserve, addresses Congress regarding the United States role in the world economy, she is discussing
A) a macroeconomic topic. B) a microeconomic topic. C) scarcity. D) incentives.
For a given nominal interest rate, an unexpectedly low inflation rate ________ the real interest rate.
A. increases B. has no impact on C. decreases D. may either increase or decrease
The quantitative difference between areas Q1bcQ2 and p1p2ba in the diagram measures
A. marginal cost. B. total revenue. C. marginal revenue. D. average revenue
An understanding of opportunity costs is important to understanding: a. how to calculate the total revenue generated by a firm. b. how to assess the economic profitability of a firm
c. How to calculate the tax liability of a firm. d. how accountants calculate accounting profits.