Refer to Figure 5-11. S1 represents the supply curve that reflects the private cost of production and S2 represents the supply curve that reflects the social cost of production
One way to internalize the external cost generated by utilities is to impose a Pigovian tax on the production of electricity. What is the size of the Pigovian tax that will internalize the cost of the externality?
A) P2-P0 B) P1-P0 C) P2-P1 D) P0
A
Economics
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The total amount of reserves in the banking system is equal to the ________ required reserves and excess reserves
A) sum of B) difference between C) product of D) ratio between
Economics
A firm practicing group price discrimination that has constant marginal cost will
A) maximize total profit by maximizing profit for each group separately. B) will charge the same price to all groups. C) will act like a monopoly and treat all groups the same. D) sets p = MC.
Economics