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

Economics

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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?

Economics

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.

Economics

Using the concepts of aggregate demand and aggregate supply, explain how the economy reaches an equilibrium level of real GDP and price level

Economics

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

Economics