A completely successful emission charge would
A. Not shift either the private or social MC curve.
B. Shift the private MC curve to the same position as the social MC curve.
C. Shift the social MC curve to the same position as the private MC curve.
D. Shift the private MC curve until the curve intersects with price at zero output and pollution is completely eliminated.
Answer: B
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Suppose the accompanying table describes the relationship between price and quantity demanded for a monopolist. QuantityPrice1$102$93$84$75$66$57$48$3If the marginal cost of producing each unit of output is $5, then at the monopolist's profit-maximizing level of output, the monopolist produces ________ units of output than is socially optimal.
A. 3 more B. 2 fewer C. 3 fewer D. 1 more