If a firm is taxed for each unit of waste it produces, the firm will decrease the amount of waste produced until:
A. there is no waste produced.
B. the marginal cost from decreasing waste is zero.
C. the marginal cost of decreasing waste is equal to the marginal benefit from decreasing waste.
D. the marginal benefit from decreasing waste is equal to zero.
Answer: C
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One problem that haunts most antitrust litigation is that: a. the government seldom wins
b. the appearance of vigorous competition resembles acts that undermine competition. c. it has the effect of preventing firms from being tough on their rivals. d. the defendant firm may be destroyed.
The primary advantage to selling pollution permits rather than using a fixed percent reduction for all firms is that:
A. enforcement costs are eliminated. B. the government can raise additional revenue. C. pollution reduction is accomplished in the least costly way possible. D. pollution is driven to zero.
Greater labor productivity means
A. Lower output per labor-hour. B. Higher output per worker. C. Higher labor cost per unit of output. D. Lower output per worker.
Rita makes $150 a day as a bank clerk. She takes off two days of work without pay to fly to another city to attend the concert of her favorite music group. The cost of transportation for the trip is $250. The cost of the concert ticket is $50. The opportunity cost of Rita's trip to the concert is:
A. $500. B. $600. C. $450. D. $300.