In a perfectly competitive market, a technological advance allows all firms to earn higher economic profits in the long run
a. True.
b. False.
B
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Answer the following statement(s) true (T) or false (F)
1. The major categories of market instruments are: pollution charges, deposit/refund systems, subsidies, and pollution permit trading systems. 2. A payment or tax concession aimed at lowering the cost of abating is called a pollution charge. 3. Because polluters ignore the MEC of environmental damage linked to the production of a good, too few resources are allocated to producing that good. 4. A pollution charge follows the “polluter-pays principle.” 5. If production of a good generates an environmental negative externality, the effect of that externality is captured by the MEC of production.
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
A new medical study reports that washing your hair everyday increases the probability of baldness. Predict the effects of this report on the market for shampoo
What will be an ideal response?
The demand for products that provide benefit externalities is generally ________ the demand for products that do not
A) greater than B) less than C) the same as D) greater or less (depending on the market) than