When competitive market equilibrium determines a level of output for which the marginal social cost exceeds the marginal social benefit, the private equilibrium results in
a. a positive externality
b. a Coase equilibrium
c. underproduction of the product
d. a market failure
e. external benefits
D
You might also like to view...
The formula to compute the spending multiplier is:
a. 1 / (MPC + MPS). b. 1 / (1 ? MPC). c. 1 / (1 ? MPS). d. 1 / (C + I).
If M = $1,200 billion and V = 4, then total spending is _______________billion. Then velocity falls to 2 and M rises to $2,000 billion, so that total spending is now _______________ billion, and GDP has _________________
A) $4,800; $4,000; declined B) $300; $1,000; risen C) $4,800; $4,000; risen D) $1,204; $2,002; risen
Which of the following represents the law of supply?
A) An increase in the price of a good causes an increase in the supply of that good. B) An increase in the price of a good causes a rightward shift of the supply curve for that good. C) An increase in the price of a good causes an increase in the quantity supplied of that good. D) all of the above
Which of the following is the long-run outcome for monopolistic competition?
A) MR > MC. B) P > ATC > MC. C) P = ATC. D) P > ATC.