Productivity growth occurs when:

A player can choose among three strategies: T, M, and B. Nevertheless, strategy B is dominated by strategy T. This means that

A) strategy T is always played. B) strategy B is never played. C) strategy B will be part of a Nash equilibrium. D) strategy M is never played.

An optimal tax on pollution would result in which of the following?

a. Producers will choose not to produce any pollution. b. Producers will internalize the cost of the pollution. c. Producers will maximize production. d. The value to consumers at market equilibrium will exceed the social cost of production.