The government is considering levying a tax on the pollution generated from two electric power plants (Plant A and Plant B)
Plant A is located in a city with a high density of population, and Plant B is located in the rural area with a low density of population. The government should A) levy the same tax per unit of pollution on both plants.
B) levy a higher tax per unit of pollution on Plant A because of its higher economic damage.
C) levy a higher tax per unit of pollution on Plant B because of its lower economic damage.
D) tax only Plant A but not Plant B because Plant B generates less revenue.
B
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Suppose Gizmo Inc is willing to sell one gizmo for $10, a second gizmo for $12, a third for $14, and a fourth for $20, and the market price is $20 . What is Gizmo Inc's producer surplus?
a. $56 b. $24 c. $20 d. $10
Some reasons that firms may experience diseconomies of scale include
a. the firm is too small to take advantage of specialization b. large management structures may be bureaucratic and inefficient c. if there are too many employees, the work place becomes crowded and people become less productive d. having more employees doesn't mean there will be more raw materials to use in production e. average fixed costs begin to rise again