Assuming steak and potatoes are complements, other things being equal, an increase in the price of steak, will:
a. increase the demand for potatoes. b. decrease the demand for potatoes.
c. increase the demand for steak. d. decrease the demand for steak.
b
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Now, assume that the government institutes an emission fee of $16 thousand per unit of pollution. How many units of pollution would each polluter abate? Is the $16 thousand fee a cost-effective strategy for meeting the standard? Explain.
Assume that there are two firms, each emitting 20 units of pollutants into the environment, for a total of 40 units in their region. The government sets an aggregate abatement standard (AST) of 20 units. The polluters' cost functions are as follows, where the dollar values are in thousands: Polluter 1: TAC1 = 10 + 0.75(A1)2, Polluter 2: TAC2 = 5 + 0.5(A2)2, MAC1 = 1.5A1, MAC2 = A2.
The remarkable success of the HPAEs proves that
A) trade policy is the key to successful economic growth. B) trade policy is irrelevant to successful economic growth. C) high educational standards is the key to successful economic growth. D) dual economies must suffer economic stagnation. E) trade policy can lead to a higher standard of living for developing countries.
A perfectly competitive firm hires more resources than a monopolist
a. True b. False Indicate whether the statement is true or false
If we are considering the relationship between two variables and release one of the other- things-equal assumptions, we would expect:
A. the relationship to change from direct to inverse. B. the line representing that relationship on a graph to shift. C. the data points to have a tighter fit to the line representing the relationship. D. the relationship to change from inverse to direct.