According to the criteria of cost-effectiveness, an abatement standard is set optimally if
a. that standard is benefit-based
b. it is set where the MSB of abatement is equal to ?(MACmkt + MCE).
c. the standard is reached at minimum cost
d. it is set at the point where MSB of abatement equals zero
e. it is set at the point where MSC of abatement equals zero
c. the standard is reached at minimum cost
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If wheat farmers would receive a larger gross income from wheat sales when half the total wheat crop was destroyed, the demand for their wheat is
A) elastic. B) inelastic. C) larger at higher prices. D) smaller at higher prices. E) unit elastic.
A firm will continue to produce in the short run even though economic profits are negative as long as
A) the amount of the loss is no greater than the amount of fixed cost. B) MC = MR. C) it earned positive economic profits last year. D) it has fixed obligations to pay.
Labor contracts often fix wages for more than one year
a. True b. False Indicate whether the statement is true or false
Refer to the given table.Price Per UnitColumn A Units Per YearColumn B Units Per Year$4011040$459550$508060$556570$605080 Suppose the columns in this table reflect demand and supply. If the current market price is $50, then you would expect:
A. demand to decrease and supply to decrease. B. supply to decrease. C. the market price to fall. D. the market price to rise.