If price-taking firms are required to install wet scrubbers on their chimneys to meet EPA regulations and their costs increase as a result, we would expect
a. demand for the product to fall
b. the market supply curve to shift to the left
c. the long-run economic profit of individual firms in the industry to fall
d. the short-run economic profit of individual firms in the industry to remain unchanged
e. short-run profits to rise as the industry raises price more than the cost of pollution
B
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Jodie has indifference curves for CDs and colas, with CDs on the vertical axis. The flatter her indifference curves are, the
A) smaller her average rate of substitution. B) larger her average rate of substitution. C) smaller her marginal rate of substitution. D) larger her marginal rate of substitution.
In panel data, the regression error
A) is likely to be correlated over time within an entity B) should be calculated taking into account heteroskedasticity but not autocorrelation C) only exists for the case of T > 2 D) fits all of the three descriptions above