At the benefit-based standard, total social benefits (TSB)
Suppose that the costs and benefits of achieving water quality in New York are modeled as shown below. Use these relationships for any or all of questions 14 through 16.
MSB = 80 – 2A MSC = 20 + 2A
TSB = 80A – A2 TSC = 20A + A2,
where A is the abatement level for conventional pollutants.
a. equal zero c. are minimized
b. are maximized d. equal TSC
b. are maximized
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The above figure shows supply and demand curves for apartment units in a large city. If the city government passes a law that establishes $450 per month as the legal maximum rent, consumer surplus will be
A) a. B) a + b + f. C) a + b + c. D) a + b + c + f + g.
In finance, risk is most commonly measured by
A) the probability distribution. B) the standard deviation. C) the average deviation. D) the square root of the standard deviation.