Two firms, Acme and FirmCo, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below.Process(smoke/day) A(10 tons/day) B(8 tons/day) C(6 tons/day) D(4 ton/day) E(2 tons/day) Cost to Acme ($/day) $750$800$1,000$1,400$2,000 Cost to FirmCo ($/day) $500$750$1,200$2,200 $4,000If pollution is unregulated, the two firms will produce using process ________, and a total of ________ tons of smoke will be emitted each day.

Which of the following is true of a recessionary gap? a. It develops when the expected price level is less than the actual price level

b. In the long run, this gap closes when resource suppliers negotiate lower resource payments. c. It measures the amount by which actual output is greater than the economy's potential output. d. In the long run, this gap closes when the short-run aggregate supply curve shifts rightward. e. In the long run, this gap closes when the aggregate demand curve shifts rightward.

Which of the following would lead to a rightward shift in the demand curve for golf balls?

a. An increase in the price of golf clubs b. A decrease in the popularity of golf c. An increase in the number of golfers d. A decrease in the price of golf balls e. An increase in the golf club membership fee