If the credits for a principles of economics section is three units and an instructor teaches two sections with 100 students in each and tuition and fees at your university are $100 per unit. If the instructor is paid $ 20,000 to teach both classes, should the university hire the instructor?

Which of the following would be the most likely result of a binding price ceiling imposed on the market for rental cars?

a. frequent rental programs such as "Rent nine times and the tenth rental is free!" b. enhanced maintenance programs to promote the high quality of the cars c. free gasoline given to people as an incentive to a rent a car d. slow replacement of old rental cars with newer ones

Suppose that electricity producers create a negative externality equal to $5 per unit. Further suppose that the government imposes a $5 per-unit tax on the producers. What is the relationship between the after-tax equilibrium quantity and the socially optimal quantity of electricity to be produced?

a. They are equal. b. The after-tax equilibrium quantity is greater than the socially optimal quantity. c. The after-tax equilibrium quantity is less than the socially optimal quantity. d. There is not enough information to answer the question.