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Question
7. Due to the fact that firms concern themselves primarily with earning profits, a common complaint is that they often damage the environment in the process. More recently, markets have been set up so that firms can actually reduce their costs and profit more by damaging the environment less and selling their right to pollute to other companies. Discuss how this serves as a positive incentive for a firm to act in an environmentally responsible manner. What would be a way to discourage firms from polluting through the use of negative incentives?
Answer
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Related questions
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When the price elasticity of demand is elastic, a consumer is
a. completely unresponsive to a change in price.
b. relatively unresponsive to a change in price.
c. unaffected by a change in price.
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e. completely responsive to a change in price.
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b. 100 percent.
c. 4.0 percent
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Price gouging laws will usually result in ________ the product in the distressed market.
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c. government setting up an agency to regulate supply of
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Q:
The economic entity most likely to engage in price gouging is
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Q:
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Q:
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a. A surplus will continue to exist and will grow larger over time.
b. A surplus will continue to exist and will grow smaller over time.
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Q:
Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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Q:
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Q:
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Q:
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