Assume that the Clean Air Act requires an increase in sulfur dioxide (SO2) abatement (A) from 50 to 60 percent and that the relevant MSC (in millions) is MSC = 12 + 0.8A, where A is measured in percent. Then, the incremental cost of this policy change is

All of the following characteristics apply to monopolistic competition EXCEPT

A) a large number of firms compete. B) each firm produces the same identical product. C) firms compete on product quality, price, and marketing. D) there are no barriers to enter or exit the industry.

The table above shows the marginal costs and marginal benefits of college education. The efficient amount of enrollment is

A) 12 million. B) 20 million. C) 16 million. D) 24 million.