An emissions standard will work best in which of the following cases?
a. The marginal cost of pollution reduction curve is relatively flat
b. The marginal cost of pollution reduction curve is relatively steep
c. All firms have similar equipment and technology
d. The health effects of a pollutant are relatively unknown
e. Firms have very different equipment and technology
Ans: c. All firms have similar equipment and technology
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Which of the following lists has variables that all shift a good's demand curve?
A) price of the good, preferences, prices of substitution goods, income B) income, preferences, number of buyers, price of complementary good C) expectation of future price, price of the good, number of buyers, income D) Both answers A and B are correct.
If an industry consists of only four firms with equal market shares, then the Herfindahl index
a. is 25 b. is 10,000 c. is 100 d. is 2,500 e. cannot be calculated without additional information