If the social cost is greater than the private cost in a particular market, the socially optimal equilibrium will be at a quantity:
A. greater than the private level.
B. equal to the private level.
C. less than the private level.
D. greater than or less than the private level, depending on the size of the external costs.
C. less than the private level.
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Which of the following describes a characteristic of a perfectly competitive market?
A) Equilibrium is achieved when demand for the product sold in the market equals the supply. B) There are many buyers and sellers. C) There are many sellers but few buyers. D) There are many buyers but few sellers.
If a perfect competitor faces P = ATC in the long run, the firm will
A) earn economic profits. B) earn economic losses. C) leave the industry. D) remain in the industry.
What is a downside of trade protection?
a. Instead of protecting U.S. interests and giving domestic manufacturing an advantage over items manufactured elsewhere, it can have the unintended effect of driving the manufacturing completely out of the country. b. It can give U.S. interests and domestic manufacturing too much of an advantage over items manufactured elsewhere, having the unintended effect of driving the manufacturing completely out of the country. c. It can give U.S. interests and domestic manufacturing too much of an advantage over items manufactured elsewhere, having the unintended effect of bringing more manufacturing into the country than can be handled. d. Instead of protecting U.S. interests and giving domestic manufacturing an advantage over items manufactured elsewhere, it can have the unintended effect of bringing more manufacturing into the country than can be handled.
The best explanation for ________ is a fixed factor causes diminishing returns to other factors.
A. a horizontal marginal revenue curve B. a perfectly competitive firm earning economic profits in the long run C. the shape of a short-run marginal cost schedule D. increasing returns to scale