Suppose There Are Only Two Manufacturers of in an Area

question 59

Multiple Choice

Suppose there are only two manufacturers of in an area that and generate the same amount of carbon emission pollution per hour.The only difference is that firm 1 is a low cost firm and firm 2 is a high cost one.What would we expect if the government were to use a uniform abatement policy?

• A)the demand for tires to increase
• B)the quantity of tires produced to increase
• C)The uniform abatement policy is likely to be inefficient.
• D)The uniform abatement policy is likely to be efficient.

---

Definitions:

Law Eliminating Holidays

A hypothetical regulation that would remove public holidays from legal recognition, potentially affecting work schedules and compensation.

Leisure

Time spent away from business, work, job hunting, domestic chores, and education, as well as necessary activities such as eating and sleeping.

GDP

Gross Domestic Product is the aggregate value, in terms of money or market price, of all end products and services generated within the confines of a country during a certain period.

Socioeconomic Variables

Characteristics that define the social and economic factors of individuals or groups, such as income, education, and occupation.