An excess supply of money is eliminated by a falling price level

When a tax on emissions into the air accurately reflects the cost to all members of society of an additional unit of the emissions, it

A) amounts to no more than a license to pollute. B) encourages firms to reduce emissions as long as the cost of doing so is less than the cost of continuing the emissions. C) gives firms little incentive to search for less-polluting production processes. D) will not prevent large and profitable firms from polluting.

Some firms have an incentive to advertise because they sell a

a. homogeneous product and charge a price equal to marginal cost. b. homogeneous product and charge a price above marginal cost. c. differentiated product and charge a price equal to marginal cost. d. differentiated product and charge a price above marginal cost.