The market mechanism provides a financial incentive for firms to minimize the pollution they create

If a company raises prices on a product with elastic demand, total revenues will probably decrease.

a. true b. false

Consider the two graphs below. Graph A represents a typical firm in a purely competitive industry. Graph B represents the supply and demand conditions in that industry. The dashed horizontal line represents the current market price for firms and for

the industry. In the long run, what will happen to price, profit, the supply curve, and the number of firms in the industry? What will be an ideal response?