Which of the following could help explain why professional football players have high salaries?
a. There is little social status attached to the occupation.
b. Their marginal revenue products are typically very low.
c. They face a high chance of having their careers cut short.
d. Many college football players want to become professional football players.
e. The labor market is perfectly competitive due to the players' union.
C
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Under a transferable emissions permit system with n possible polluters, the government enforces the total amount of emissions allowable at X units by
A) setting a different fee for each firm so that each firm chooses to emit X/n units. B) setting the same fee for each firm so that each is forced to emit X/n units. C) setting a different standard for each firm, with X/n being the average. D) setting the same standard for each firm at X/n. E) issuing X permits.
If a hospital is experiencing economies of scale,
a. its average cost curve is positively sloped as output increases. b. its average cost curve is negatively sloped as output increases. c. it should reduce its output level to lower costs. d. quality is falling as output is rising. e. both b and c are true.