A subsidy to firms intended to reduce pollution in an industry would
a. shift the LRAC curve upward.
b. have the same impact on the firm as a tax.
c. likely drive some existing firms from the industry.
d. likely have the paradoxical effect of increasing pollution in the industry in the long run.
d
Economics
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The required reserve ratio ranges from
A) 0 to 3 percent. B) 0 to 7 percent. C) 3 to 30 percent. D) 0 to 10 percent.
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According to Tobin's q theory, the principal objective of investment is ________
A) to increase eligibility for the investment tax credit B) to expand production C) to increase the market value of the firm D) to lower the replacement cost of installed capital
Economics