Author Question: Refer to the scenario above. What is the equilibrium outcome in this case? A) Both firms will ... (Read 121 times)

Davideckstein7 · **on:** Jun 29, 2018

Refer to the scenario above. What is the equilibrium outcome in this case?

A) Both firms will dump their waste into the river.
B) Neither of the firms will dump its waste into the river.
C) Firm 1 will dump its waste into the river, while Firm 2 will not dump its waste.
D) Firm 2 will dump its waste into the river, while Firm 1 will not dump its waste.

Question 2

If a tariff is imposed on imports of shrimp into the United States, U.S. producer surplus from shrimp will ________ and U.S. total surplus from shrimp will ________.

A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
E) increase; not change