In an economy it costs $1,500 to produce 2,000 units of output. If the costs increase to $2,500, then the per unit cost of production will have increased from:

Tradable pollution permits

a. are widely viewed as a cost-effective way to reduce pollution. b. have helped reduce carbon emissions in Canada. c. have helped reduce sulfur dioxide emissions in the United States. d. All of the above are correct.

The administrative burden of regulating price in a monopolistically competitive market is

a. small due to economies of scale. b. large because price is usually below marginal cost. c. large because of the large number of firms that produce differentiated products. d. small because firms produce with excess capacity.