The existence of a positive externality demonstrates that
a. prices are too low
b. there are third party costs
c. the source is costly to identify
d. the value society derives from a good may be greater than the value the person who buys it receives
e. benefits are included in price, but not quantity
D
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Which statement is consistent with the economic way of thinking?
A) Politicians seek to advance their own interests. B) Politicians are not only concerned with money and material goods. C) Politicians do not necessarily pursue narrow or selfish goals. D) All of the above. E) None of the above.
What does this equation represent? $2,000 for monthly rent and equipment leases / 400 units of output = $5
a. average variable cost b. average fixed cost c. diminishing marginal cost d. total average cost
The single-price monopolist shown in the above figure could increase its economic profit if
A) it became a price discriminator. B) its costs of production decreased. C) the demand for its good increased. D) any or all the above were to occur.
Countries with high wages cannot export to low wage countries
Indicate whether the statement is true or false