Producing leather creates external costs in the form of water pollution. The figure above illustrates the market for leather. In the absence of any government regulation, how many tons of leather will be produced?

Angelica wants to open a restaurant and is thinking of setting it up as a corporation. What are the advantages and disadvantages she will face by setting up the business as a corporation as opposed to a sole proprietorship or a partnership?

What will be an ideal response?

When the firm is able to perfectly price discriminate, each unit is sold at its: a. peak load price

b. reservation price. c. cost price. d. market price.