Suppose that the current price of a marketable permit to emit one ton of gunk is $60 . For firm A, the marginal cost of reducing one ton of gunk is $50 . For firm B, the marginal cost of reducing one ton of gunk is $70 . Under a marketable permit system, _____
a. both firms will buy a permit and emit one more ton of gunk
b. firm A will buy a permit and emit one more ton of gunk, whereas firm B will reduce its emissions of gunk by one ton
c. firm B will buy a permit and emit one more ton of gunk, whereas firm A will reduce its emissions of gunk by one ton
d. both firms will reduce their emissions of gunk by one ton
e. both firms will go out of business
c
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Suppose the extra cost to a pet store of advertising one additional day each week in the local newspaper is $450
Then, the pet store should advertize that one additional day each week if doing so brings in additional revenue of $450 or more each week. Indicate whether the statement is true or false
The above figure shows four different markets with changes in either the supply curve or the demand curve. Which graph best illustrates the market for computers after technological advances in making computers occur?
A) Graph A B) Graph B C) Graph C D) Graph D