Which of the following would illustrate an example that leads to high transaction costs when dealing with pollution?
a. air quality in New York City
b. water pollution caused by a large number of firms at a location near the same river
c. noise pollution from aircraft near a busy airport
d. all of the above
D
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When the credit demand curve is relatively steep:
A) the quantity of credit demanded is relatively sensitive to changes in the tax rates. B) the quantity of credit demanded is not very sensitive to changes in the real interest rate. C) the quantity of credit demanded is relatively sensitive to changes in the real interest rate. D) the quantity of credit demanded is not very sensitive to changes in the tax rates.
One way a monopoly can convert additional consumer surplus into economic profit is to
A) lower prices. B) raise prices. C) price discriminate. D) become more competitive. E) produce where price equals average total cost.