Suppose that the government decides to issue tradable permits for a certain form of pollution. true or false: in terms of economic efficiency in the market for pollution, it does not matter whether the government distributes the permits or auctions them off. a. true b. false true or false: if the government chooses to distribute the permits, the allocation of permits among firms matters for efficiency. a. true b. false

Suppose the price of frozen yogurt, a substitute for ice cream, increases. what happens to equilibrium price and quantity of ice cream? a. the price and quantity of ice cream both increase b. the price and quantity of ice cream both decrease c. the price of ice cream increases and the quantity decreases d. the price of ice cream decreases and the quantity increases

Rats that received electric shocks were unlikely to develop ulcers if the

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine