With the real wage on the vertical axis and employment (N) on the horizontal axis, we know that
A) the WS curve is upward sloping.
B) the WS curve is downward sloping.
C) the PS curve is upward sloping.
D) the PS curve is downward sloping.
A
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If a monopolist's marginal revenue is $3.00 and its marginal cost is $4.50, it will increase its profits by:
A. reducing output and raising price. B. reducing both output and price. C. increasing both price and output. D. raising price while keeping output unchanged.
Suppose that there are two firms, each generating three tons of SO2. Suppose also that the government has set a target abatement level of two tons. Under a policy of uniform abatement with permits, each firm would receive:
A. two non-transferable pollution permits. B. two pollution permits which they could sell to each other. C. one pollution permit with a value equal to that firm's cost of abating one ton of SO2. D. one pollution permit with a value equal to the market price for a pollution permit.