Refer to the information in Figure 16.5 below to answer the question(s) that follow.
?Figure 16.5Figure 16.5 shows the marginal benefits of emitting pollution for the only two chemical companies in an industry, Alpha Chemicals and Beta Chemicals. Before any tax on pollution emissions is imposed, each company views pollution as being free.Refer to Figure 16.5. The government decides to impose a tax on pollution emissions to cut total emissions in this industry in half, and based on this decision it has set the tax at $100 per ton of emissions. Following the implementation of this tax, the total amount of tax revenue collected by the government from this
tax will be
A. $5,000.
B. $7,500.
C. $10,000.
D. $20,000.
Answer: C
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Which of the following causes a decrease in demand for a normal good?
A) increase in price of a substitute B) increase in price of a complement C) increase in price D) increase in income
The above figure shows a firm's total revenue line. The firm must be in a market with
A) perfect competition. B) monopolistic competition. C) monopoly. D) oligopoly.
There are two closely related crops, X and Y, with the following demand functions QX = 180 - 2PX + PY and QY = 150 + PX - PY where QX is the quantity of X, PX is the price of X, QY is the quantity of Y, and PY is the price of Y
These two crops are grown in two widely separated countries so there is no interrelationship between the supply curves. The short-run perfectly inelastic supply for X is 200 while the short-run perfectly inelastic supply for Y is 100. In equilibrium, the prices are A) PX = 30, PY = 80 B) PX = 40, PY = 60 C) PX = 60, PY = 120 D) PX = 80, PY = 130
Resource price differentials that trigger the reallocation of resources so as to equalize payments for similar resources are known as
a. permanent differentials b. trigger price differentials c. reallocation differentials d. equal differentials e. temporary differentials