With Pollution Permits, the Supply Curve for Pollution Rights Is

question 82

Multiple Choice

With pollution permits, the supply curve for pollution rights is

• A)perfectly elastic.
• B)perfectly inelastic.
• C)upward sloping.
• D)downward sloping.

---

Definitions:

Factor of Production

An economic resource used in the production of goods and services, including labor, capital, land, and entrepreneurship.

Market

A group of buyers and sellers of a particular good or service.

Diminishing

A principle often referring to diminishing returns, where additional inputs result in progressively smaller increases in output.

Marginal Product

The additional output resulting from the use of one more unit of a production input, holding all other inputs constant.