If a production process creates pollution, a competitive market produces excessive pollution because
A) the firms do not include the social cost of the pollution in their profit-maximizing decisions.
B) the firms place too high a price on society's cost of inflation.
C) people are not injured by the pollution.
D) zero pollution is optimal.
A
Economics
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If government cuts taxes ________
A) national saving goes up B) the equilibrium interest rate would decrease C) discretionary income goes up D) all of the above E) none of the above
Economics
Marginal cost crosses the
a. AVC curve at the highest point of the AVC curve. b. ATC curve at the lowest point of the ATC curve. c. AFC curve at the lowest point of the AFC curve. d. ATC curve at the highest point of the ATC curve.
Economics