1) Figure 8-9
The vertical distance between points A and C represents a tax in the market.
The total surplus without the tax is
a. $8,000.
b. $12,000.
c. $20,000.
d. $40,000.
2) When one firm sells its pollution permit to another firm,
a.both firms benefit.
b.the total amount of pollution remains the same.
c.the total amount of pollution decreases.
d.Both a and b are correct.
3) Figure 10-9