Suppose that the government of New York state promises to decrease taxes to a firm if it decides to stay in New York instead of moving to another state. This policy on the part of the state constitutes ________, to make the ________ of the firm remaining in New York.
A) an incentive; marginal benefit exceed the marginal cost
B) an incentive; marginal cost exceed the marginal benefit
C) a command; marginal benefit exceed the marginal cost
D) a command; marginal cost exceed the marginal benefit
A
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Figure 4-8
Refer to . The supply curve S1 and the demand curve D indicate initial conditions in the market for soft coal. A $40-per-ton tax on soft coal is levied, shifting the supply curve from S1 to S2. Imposing the tax increases the equilibrium price of soft coal from
a.
$20 to $60 per ton.
b.
$20 to $50 per ton.
c.
$50 to $60 per ton.
d.
$50 to $90 per ton.
Refer to the data. On the basis of cost-benefit analysis, government should undertake:
The following data are for a series of increasingly extensive flood control projects:
A. Plan D.
B. Plan C.
C. Plan B.
D. Plan A.