A tax on firms for polluting will be most effective in reducing pollution at low cost if the tax
A) is levied on a one-time, lump-sum basis.
B) per unit of pollutant is constant.
C) per unit of pollutant is lower for low polluting firms.
D) per unit of pollutant is proportioned to profits or ability to pay.
B
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The term "predatory pricing" is usually used by people who are objecting to
A) extremely unpredictable prices. B) low prices. C) prices unrelated to costs of production. D) speculative pricing policies. E) very high prices.
A free rider problem arises when
a. there are very few beneficiaries and exclusion of any one of them is possible. b. there are many beneficiaries and exclusion of any one of them is possible. c. there are many beneficiaries and exclusion of any one of them is impossible. d. there are very few beneficiaries and they all try to use the good simultaneously.