Use the Following to Answer Questions

question 4

Multiple Choice

Use the following to answer questions:
Figure: City with Two Polluters
-(Figure: City with Two Polluters) Look at the figure City with Two Polluters. If the government does not intervene in the pollution market, equilibrium will occur where firm A produces _____ tons and firm B produces _____ tons of pollution, for a total of _____ tons.

• A) 2,000; 2,000; 4,000
• B) 0; 1,000; 1,000
• C) 1,000; 0; 1,000
• D) 800; 1,400; 2,200

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Definitions:

Accounts Payable

Liabilities to creditors that are to be paid within a short period of time, typically within one year.

Revenue

The whole sum of profit generated by a company through the selling of services or goods pertinent to its primary business functions.

Telephone Bill

A statement of charges for voice or data services provided by a telecommunications company.

Accounts Payable

Liabilities or money owed by a business to its suppliers or creditors for goods and services received but not yet paid for.