One way for the government to eliminate a negative externality is ...

[berenicecastro]

One way for the government to eliminate a negative externality is to
 
  A) charge an emissions fee.
  B) set an emissions standard.
  C) levy an effluent charge.
  D) All of the above.

Question 2

If a firm in an industry experiences very high fixed costs and constant marginal cost, it is a good candidate for a natural monopoly.
 
  Indicate whether the statement is true or false

[nguyenhoanhat]

Answer to Question 1

D

Answer to Question 2

True . Average cost will fall because average fixed costs decline and marginal cost stay constant. Two or more similar firms would have higher cost.

[berenicecastro]

Thanks for the timely response, appreciate it

[bigcheese9]

Gracias!