When the social cost of production is greater than the private cost, we have a
a. positive externality
b. negative externality
c. public good
d. private good
e. positive spillover
B
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XYZ Co operates in a competitive market. Its production function is q = L?K?. The exponents, ? and ?, are both less than one. The firm's capital is fixed, and it takes the wage and price as given
Derive the firm's short-run demand for labor as a function of K, w, and p. How does the firm react to an increase in the wage rate?
When prices rise, the interest rate:
A. tends to rise. B. tends to fall. C. is usually not affected. D. will rise if the wealth effect outweighs the price effect.
Using the concepts of aggregate demand and aggregate supply, explain how the economy reaches an equilibrium level of real GDP and price level
As the number of firms in an oligopoly industry increases, the market moves closer to a __________ market
Fill in the blank(s) with correct word