Two firms, Acme and FirmCo, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below.ProcessABCDE(smoke/day)(4 tons/day)(3 tons/day)(2 tons/day)(1 tons/day)(0 tons/day)Cost to Acme ($/day)$750$800$1,000$1,400$2,000Cost to FirmCo ($/day)$500$750$1,200$2,200$4,000 Suppose the firms are both currently using process A. If the government imposes a tax of $110 per ton of smoke emitted, then Acme will use process ________, and FirmCo will use process ________.
A. D; C
B. C; A
C. B; A
D. C; C
Answer: B
You might also like to view...
Forward Guidance refers to:
A. a process similar to open-market purchases B. information that a central bank provides to the financial markets regarding its expected future monetary- policy path C. lending of reserves by the Federal Reserve to commercial banks D. a process similar to open-market sales
Refer to Figure 17-9. A supply shock, such as rising oil prices, would be depicted as a movement from
A) C to B to A. B) C to D to A. C) A to B to C. D) A to D to C. E) C to E to B.
Capital accounts measure
a. the foreign asset holdings of a nation and that nation's asset holding abroad b. d and e c. changes in the foreign asset holdings of a nation and the difference between its exports and imports d. the difference between a nation's exports and imports e. changes in the foreign asset holdings of a nation and that nation's asset holdings abroad
Refer to Scenario 19.4 below to answer the question(s) that follow. SCENARIO 19.4: Suppose demand for widgets is given by the equation P = 10 - 0.25Q. Originally, the price of the good is $5 per unit. When a tax of $1 per unit is imposed, the price of the good rises to $6 per unit.Refer to Scenario 19.4. How much total tax revenue is raised by the tax?
A. $1 B. $10 C. $16 D. $20