The best remedy for market failure is often
a. a market-based solution.
b. shutdown of the market.
c. no government intervention.
d. externalizing the externalities.
a
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Assuming that the government cannot act immediately and the multiplier takes effect, ultimately creating an expansionary gap of $10 billion dollars. To close this gap, government purchases must be:
A. increased by more than $10 billion. B. increased by $10 billion. C. decreased by less than $10 billion. D. decreased by $10 billion.
A cartel is a group of firms which agree to
A) behave competitively. B) raise the price of their product. C) lower the price of their product. D) increase the amount they produce.
The additional cost to a firm of producing one more unit of a good or service is equal to producer surplus
Indicate whether the statement is true or false
Refer to above figure. Given the opportunity to sell at world prices, the marginal (opportunity) cost of selling a ton domestically is what?
What will be an ideal response?