Why charge on a marginal basis?
Not what you're looking for?
Please comment:
If a fixed number of industrial polution permits are marketable, then we should just sell the right to smoke to the highest bidders rather than ban smoking outright in many cities, towns, business outlets, restaurants, and bars. It would reduce the economic losses and make the market more efficient.
Purchase this Solution
Solution Summary
Why charge on a marginal basis?
Solution Preview
False.
Consider this example, a firm pollutes the air and every unit of waste the firm generates costs the society $10 to clean up. If the government sells the right to smoke (for let's say $1000/year), then this firm may purchase that ...
Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.