A factory disposes of waste into a local waterway which water skiers use. The figure shows the demand curve and cost curves that the factory faces. If no property rights exist on the waterway, then the factory will dump __________ tons of waste a week into the waterway.

0
60
90
as much as possible

A factory disposes of waste into a local waterway which water skiers use. The figure shows the demand curve and cost curves that the factory faces. If the waterway is owned by a water ski club, then the factory will dump ____________ tons of waste a week into the waterway.

60
as much as possible
0
90

A factory disposes of waste into a local waterway which water skiers use. The figure shows the demand curve and cost curves that the factory faces. If the waterway is owned by the factory, the water ski club will pay _________ to the factory for assurance that pollution will not exceed the efficient level.

$3,600 per week
as much as necessary
a negotiated amount that exceeds $3,600 a week
nothing (because any pollution is too much)

A local factory emits sulfur dioxide. There are no external benefits to the emissions and no private costs. The table shows the marginal private benefits and marginal social costs. The efficient amount of pollution is achieved by imposing an emission charge on the factory of _______ a ton.

$24
at least $28
$15
zero

A local factory emits sulfur dioxide. There are no external benefits to the emissions and no private costs. The table shows the marginal private benefits and marginal social costs. If an emission charge is set at $21 a ton, pollution from the factory will be _________________.

5 million tons a year more than the efficient quantity
the efficient amount
as much as possible because there is no equilibrium
7.5 million tons a year

There are two industries that emit sulfur dioxide. The government decides to issue marketable permits. If Harry's industry has a higher marginal benefit from emitting sulfur dioxide than does Joe's industry, ______________.

Harry's will purchase marketable permits from Joe's
marketable permits will not make the amount of pollution efficient
Harry's and Joe's will emit the same quantity of sulfur dioxide
Joe's will purchase marketable permits from Harry's

The table shows the marginal private benefit, marginal social benefit, and marginal private cost of education at the College of Epsilon. What is the equilibrium number of students at the college if the market is unregulated?

2,000
depends on the size of the lecture halls
5,000
800

The table shows the marginal private benefit, marginal social benefit, and marginal private cost of education at the College of Epsilon. What is the efficient number of students at the college?

5,000
3,200
2,600
2,000

The table shows the marginal private benefit, marginal social benefit, and marginal private cost of education at the College of Epsilon. What is the tuition fee that will make the number of students equal to the efficient number?

$200
$3,200
$800
$2,600

The table shows the marginal private benefit, marginal social benefit, and marginal private cost of education at the College of Epsilon. What total subsidy will the colleges require to take in the efficient number of students?

$12 million
$1.6 million
$2,400
$13 million

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