Emission Controls on Automobiles Are an Example of a

question 388

Multiple Choice

Emission controls on automobiles are an example of a

• A)corrective tax.
• B)command-and-control policy to increase social efficiency.
• C)policy that reduces pollution by allocating resources through market mechanisms.
• D)policy to reduce congestion on urban freeways.

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Definitions:

Profit-Maximizing

The strategy or process that companies or individuals employ to achieve the highest possible profit from their operations, taking into account factors like production costs, market demand, and pricing strategies.

Pure Monopolist

A market participant that has complete control over the market for a particular good or service, with no close substitutes.

Profit-Maximizing Quantity

The level of output at which a company can achieve the highest profit, where marginal cost is equal to marginal revenue.

Price Discriminate

The practice of selling the same product to different consumers at different prices based on what each is willing to pay.