If either the production or consumption of a good generates an external cost, then the:
A. social demand curve will lie to the right of the private demand curve.
B. social demand for the good will equal zero.
C. social marginal cost curve will lie to the left of the private marginal cost curve.
D. social marginal cost curve will lie to the right of the private marginal cost curve.
Answer: C
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Refer to the payoff matrix below. If Best Lights and Bright Lights both know that they will play the game a finite number of times, but neither firm knows when the last period will be, there ________ an opportunity to earn higher profit because the managers ________ worry about punishment for cheating.
A) is; will not
B) is; will
C) is not; will
D) is not; will not
If all firms in a market have the same LRATC curve,
a. only one of them can survive in the long run b. the lowest possible long-run price is determined by LRATC at minimum efficient scale c. the highest possible long-run price is determined by LRATC at minimum efficient scale d. minimum efficient scale must be zero e. there is no minimum efficient scale
Advocates of unions contend that unions are a necessary antidote to the market power of the firms that hire workers and that unions are important for helping firms respond efficiently to workers' concerns
a. True b. False Indicate whether the statement is true or false
If the firm is maximizing profits, this firm charges a price of
A. $12.
B. $13.
C. $16.
D. $25.