When a financial intermediary purchases a nontraded claim of either a business or an individual, its main concern is with

Profit equals total revenue minus total cost

a. True b. False Indicate whether the statement is true or false

A difficulty with using a uniform per-unit tax to address a negative externality is that

A) the tax will reduce output. B) the tax will increase price. C) the social cost of pollution might vary across geographic regions. D) the social cost of pollution should not be assessed on the consumers, but should be assessed on the firms.