A buyer's consumer surplus on a unit of a good is its value to that buyer minus what the buyer actually pays for it
a. True
b. False
A
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Assume the production of a good gives rise to external benefits. The government may increase efficiency by
A) subsidizing consumption of the good. B) requiring all producers of the good to be licensed. C) taxing production of the good. D) imposing taxes on the good.
Federal subsidies to higher education benefit
a. only the student b. only universities c. both universities and students d. neither universities nor students
One major fault with factor pricing analysis is that marginal productivity theory merely attempts to justify the income distribution that the capitalist system yields
a. True b. False Indicate whether the statement is true or false
Why is it important to distinguish between explicit and implicit costs?
Please provide the best answer for the statement.