If the government creates a system of pollution permits, firms with low marginal costs of reducing pollution will
A) buy permits from other firms.
B) sell permits to other firms.
C) hold on to the permits they have been issued and not attempt to buy more.
D) not be issued permits.
B
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When an oligopoly cuts its price to try and attract customers from rivals, it could lead to a price war
a. True b. False Indicate whether the statement is true or false
Classical economists and monetarists believe that the investment curve is
a. vertical b. steep to reflect the view that changes in investment are relatively insensitive to changes in the interest rate c. steep to reflect the view that changes in investment are very sensitive to changes in the interest rate d. unrelated to the interest rate e. relatively flat to reflect the view that changes in investment are sensitive to changes in the interest rate