Suppose a Competitive Industry Generates Some Sort of Pollution While

question 10

Multiple Choice

Suppose a competitive industry generates some sort of pollution while producing its output.In order to internalize the externality,the government may:

• A)impose a tax equal to the marginal external cost of pollution.
• B)offer a subsidy equal to the marginal external benefit derived from the consumption of the good.
• C)impose a quota that reduces output to the point where private marginal costs of production equal marginal revenue.
• D)impose a price floor on the good produced by the industry.

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Definitions:

Rule 10b-5

A regulation under the Securities Exchange Act of 1934 prohibiting any act or omission resulting in fraud or deceit in connection with the purchase or sale of any security.

1933 Securities Act

A federal statute enacted to govern the offer and sale of securities, aiming to ensure transparency and fairness in the securities market by requiring disclosures through registration of securities.

Material Fact

A crucial piece of information that can affect the outcome of a legal decision or the valuation of an investment.

Section 5

Often refers to a specific section of a larger act or law, needing explicit context, such as Section 5 of the Federal Trade Commission Act related to unfair or deceptive acts or practices.