Firms that emit toxins into the air tend to
a. underproduce because the private cost of production exceeds the social cost
b. overproduce because the social cost of production exceeds the private cost
c. produce the same as nonpolluting firms
d. produce at the socially optimal amount
e. cover pollution costs in the product's price
B
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The United Auto Workers union is largely responsible for the historically high pay of American auto workers by negotiating pay raises above those obtained by workers in other industries. In addition to increasing the pay of auto workers, what other long-run effect would this high pay have on the use of auto workers?
One of the elements of monopolization is
A) having a superior product or having a superior business acumen.. B) the possession of monopoly power in the relevant market. C) when only one firm exists in an industry. D) having a significant pricing power due to an accident in the relevant market.