A preference for either taxes or permits to regulate pollution is dependent on the relative shape of what two curves?
a. Total cost of damage curve and total cost of pollution reduction curve
b. Marginal revenue of pollution control curve and marginal cost of damage curve
c. Marginal cost of pollution reduction curve and marginal cost of damage curve
d. Marginal benefit of pollution curve and marginal revenue of pollution curve
e. Marginal utility of pollution curve and marginal cost of regulation
Answer: c. Marginal cost of pollution reduction curve and marginal cost of damage curve
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If an oligopolist reduces the price of its product: a. It may get some customers to switch from rival firms if they don't respond by reducing their prices
b. It may not get some customers to switch from rival firms if they respond by reducing their prices. c. It does not know whether its profits will rise or fall without knowing how rivals will change their prices in response. d. All of the above are true.
The most important U.S. anti trust law:
a. Hampton Act b. Rule of Reason c. Sherman Act d. Wagner Act e. All of the above
Refer to the given table. Suppose the columns in this table reflect demand and supply. At a price of $50:Price Per UnitColumn A Units Per YearColumn B Units Per Year$2010040$309550$408060$506570$605080
A. there will be an excess supply of 70 units. B. there will be an excess supply of 5 units. C. there will be an excess demand of 5 units. D. the market will be in equilibrium.
Economic surplus is maximized in a competitive market when
A) producers sell the quantity that consumers are willing to buy. B) demand is equal to supply. C) marginal benefit equals marginal cost. D) the deadweight loss equals the sum of consumer surplus and producer surplus.