In the above figure, to achieve the efficient amount of paper production, the government could impose a tax of
A) $2 per ton.
B) $8 per ton.
C) $26 per ton.
D) zero, because the efficient amount is produced with no government intervention.
B
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The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours. If Scott offers two swim tours per week, he incurs a marginal cost of
A) more than $30. B) $30. C) $20. D) $10. E) $2.
In 1976 New Jersey voters passed a referendum to legalize gambling. Several gambling casinos opened in Atlantic City beginning in 1978 and were initially very profitable, attracting people from the Mid-Atlantic and Northeastern states
Entrepreneurs in these states were unable to compete with the Atlantic City casinos because casino gambling was illegal in their states. For these entrepreneurs in the other states, the barrier to entry they were facing was A) government imposed. B) self imposed. C) due to economies of scale. D) due to ownership of a key resource.