If Price-Taking Firms Are Required to Install Wet Scrubbers on Their

question 57

Multiple Choice

If price-taking firms are required to install wet scrubbers on their chimneys to meet EPA regulations and their costs increase as a result, we would expect

• A)demand for the product to fall
• B)the market supply curve to shift to the left
• C)the long-run economic profit of individual firms in the industry to fall
• D)the short-run economic profit of individual firms in the industry to remain unchanged
• E)short-run profits to rise as the industry raises price more than the cost of pollution

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Definitions:

Phrenology

A now-discredited theory that suggested the shape and size of the human skull could determine personality traits and mental abilities.

Pseudoscience

Claims, beliefs, or practices presented as scientific but lacking empirical evidence or scientific method.

Hippocrates

An ancient Greek physician often referred to as the "Father of Medicine," known for his contributions to the understanding of disease and the Hippocratic Oath.

Critical Thinkers

Individuals who actively engage in analysis, evaluation, and synthesis of information to make reasoned judgments.