Suppose people value clean air more as their incomes increase, then
A) the marginal cost curve of pollution abatement to shift left, increasing the degree of air quality.
B) the marginal cost curve of pollution abatement to shift right, increasing the degree of air quality.
C) the marginal benefit curve of pollution abatement to shift right, increasing the degree of air quality.
D) the marginal benefit curve of pollution abatement to shift left, increasing the degree of air quality.
Answer: C
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When a country takes a unilateral approach to free trade, it
a. removes trade restrictions on its own. b. reduces its trade restrictions while other countries do the same. c. does not remove trade restrictions no matter what other countries do. d. is willing to trade with multiple countries at once.
The monopolist's marginal revenue is less than price since
A. the demand function is horizontal. B. additional units can only be sold if the price is lowered on all units sold. C. average total cost is declining. D. average revenue is also less than price.