In the single-polluter case, suppose a firm faces an emission charge implemented as a marginal tax (MT) of 12 and that its MAC = 0.8A. Based on this information, the firm
a. is better off paying the tax at abatement levels below 15 units
b. should abate pollution for all abatement levels up to 15 units
c. is better off paying the tax as long as the abatement level is 1.5 units or less
d. none of the above
b. should abate pollution for all abatement levels up to 15 units
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Which of the following is true?
a. Borrowers take bigger risks with their money than they would with other peoples' money b. Borrowers take bigger risks with other peoples' money than they would with their own c. Borrowers take big risks on investments regardless of whether it is their own money or not d. Borrowers should not be investing at all
Draw a two period budget line where the borrow/lending rate of interest, r, allows consumers to choose consumption in each of the two periods. C1 and C2 given their anticipated income on two periods, Y1 and Y2 . The vertical (C2) intercept is
a. b. c. d.