When a negative externality is present in a market, when a tax is imposed, it is:
A. inefficient, because the net benefit of buying another unit is zero for all market participants.
B. efficient, because the government mandates the efficient quantity without regard for net benefits.
C. inefficient, because the government mandates the efficient quantity without regard for net benefits.
D. efficient, because the net benefit of buying another unit is zero for all market participants.
Answer: D
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Indicate whether the statement is true or false
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A. the number of inputs used. B. technology. C. technology and input prices. D. technology and output prices.
Consumers are generally willing to spend more time researching cars before making a purchase than they do researching paper towels because: a. the cost of gathering information about paper towels is very small
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During a contraction,
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