Indifference curves located closer to the origin
a. are less preferred to those located farther away from the origin
b. are more preferred to those located farther away from the origin
c. cannot be tangent to a budget line
d. eventually become straight lines that coincide with the budget line
e. represent preferences that are not rational
A
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List the characteristics of a perfectly competitive market
What will be an ideal response?
Refer to the information in Figure 16.5 below to answer the question(s) that follow.
?Figure 16.5Figure 16.5 shows the marginal benefits of emitting pollution for the only two chemical companies in an industry, Alpha Chemicals and Beta Chemicals. Before any tax on pollution emissions is imposed, each company views pollution as being free.Refer to Figure 16.5. The government decides to impose a tax on pollution emissions to cut total emissions in this industry in half, and based on this decision it has set the tax at $100 per ton of emissions. For Alpha, the tax is ________ than the marginal benefit it gets from polluting, and for Beta, the tax is ________
than the marginal benefit it gets from polluting. A. higher; lower B. lower; higher C. lower; lower D. higher; higher