The outcome of first-degree price discrimination is:
A) Pareto efficient with equity.
B) Pareto efficient with inequity.
C) Pareto inefficient with inequity.
D) Pareto inefficient but is equitable.
B
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Which of the following employers is the most prejudiced? Employer:
A. A, whose d is $0. B. B, whose d is $2. C. C, whose d is $4. D. D, whose d is $6.
Two companies, Dirty Inc. and Filthy Inc., each of which has access to 5 different production processes, each of which has a different cost and produces a different amount of pollution. The daily costs of the processes and the number of tons of smoke emitted are shown in the table below. Process(smoke/day) A(4 tons/day) B(3 tons/day) C(2 tons/day) D(1 ton/day) E(0 tons/day) Cost to Dirty Inc. ($/day) $110$200$380$740$1,460 Cost to Filthy Inc. ($/day) $400$430$490$580 $700If pollution is unregulated, then a total of ________ tons of smoke will be emitted each day.
A. 4 B. 2 C. 1 D. 8