If the Marginal Costs of Pollution Abatement Are Different Across

question 116

Multiple Choice

If the marginal costs of pollution abatement are different across firms,then regulations that require fixed percentage reductions in pollution will be

• A)efficient.
• B)inefficient.
• C)ineffective.
• D)fair to all polluters.

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Definitions:

Economic Profit

The profit a company makes after subtracting both its explicit and implicit costs from total revenues.

Labor Services

The physical and intellectual efforts provided by workers in exchange for wages.

National Income

The total income earned by a country's residents and businesses, including wages, profits, and investment earnings, usually measured within a specific time period.

Transfer Payments

Payments made by governments to individuals through social benefit programs without any goods or services being received in return.