Many states use container redemption programs to encourage reuse of glass bottles and other recyclable containers
Suppose a state has a current redemption program that imposes a 10-cent per container fee, and then the state increases the fee to 15 cents per container. What is the expected impact of this change on the optimal quantity of unredeemed (scrapped) containers? A) Optimal quantity increases
B) Optimal quantity decreases
C) Optimal quantity remains unchanged
D) We cannot determine the outcome of this policy change without having more information
B
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A firm's net worth is calculated as
A) the difference between a firm's revenues and explicit costs. B) the difference between a firm's liabilities and outstanding equities. C) the difference between a firm's assets and liabilities. D) the difference between a firm's revenues and implicit costs.
When constructing a basic macroeconomic model, several assumptions (not realistic, but necessary to simplify the analysis) are made. Which of the following are assumed to be constant?
A. The price level B. Consumption spending C. The value of fixed-money assets D. Taxes