ECON 2010 FINAL

If the city imposes a tax of 400 per ton of pollution

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: igure. If the city imposes a tax of $400 per ton of pollution, Firm B will produce ________ while Firm A will produce ________ of mercury and Firm C will produce ________ A) 600 tons; 400 tons; 900 tons B) 300 tons; 500 tons; zero tons 6. A move to Commerce City from Boulder would make you worse off. Your WTA the move is bounded from above by your income/wealth. A) True WTA- bounded by preferences in your B) False brain WTP- bounded by income 7. Let d denote Diet Cokes and c chocolate bars. At my current consumption level my MRSdc=3. So, my wtp for an additional Diet Coke is 3 chocolate bars. A) True B) False MRS= WTP externality 8. Marginal social cost of an action is the cost of the action that the producer of the action Space in between MSC does not pay is the externality A) True MSC-MC= externality MC B) False Version 1 Page 2 9. In a society that consists of one individual, which statement best describes the allocation of resources that is socially optimal A) The allocation is efficient socially optimal= equilibrium and definition of equilibrium B) It is an equilibrium C) The individual is doing well is answer D D) The individual is doing the best they can given their constraints because he is doing the best he can given his constraints it implies the market is in equilibrium and the allocation of resources is efficient...
View Full Document

Ask a homework question - tutors are online