In general, technology that reduces pollution will shift both the MC and ATC curves upward.
Answer the following statement true (T) or false (F)
True
Pollution abatement will increase the costs to the firm, shifting the MC curve upward (supply curve leftward), resulting in lower output, higher prices, and lower profits. The ATC will shift up.
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Answer the following statements true (T) or false (F)
1. Do-it-yourself activities of people are a big part of the "underground economy". 2. When businesses have to install anti-pollution equipment to clean up their wastes, they are adding to GDP. 3. GDP tends to understate economic welfare because it does not take into account increases in leisure. 4. All activities included in GDP serve to enrich society. 5. Most activities in the so-called underground economy are illegal activities involving drugs or gambling, for example.
If a tax on 5 cents a tomato lowers the price received by tomato sellers by 5 cents a tomato , then the supply of tomatoes is perfectly ___ and the seller pays ____
A) inelastic; all B) elastic; all C) inelastic; some of D) inelastic; none of E) elastic; none of