Author Question: One way for the government to eliminate a negative externality is to A) charge an emissions fee. ... (Read 35 times)

berenicecastro · **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

nguyenhoanhat · **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.