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Author Question: One way for the government to eliminate a negative externality is to A) charge an emissions fee. ... (Read 8 times)

berenicecastro

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on: Jul 1, 2018
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


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nguyenhoanhat

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Reply #1 on: Jul 1, 2018
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

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Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

gcook

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Reply 3 on: Yesterday
Gracias!

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