If the external costs of production are NOT taken into account, then production will
A. be less than socially desirable.
B. be the same since only prices are affected by externalities.
C. be more than socially desirable.
D. not continue.
Answer: C
You might also like to view...
Debt service payments appear in
(a) the current account. (b) the capital account. (c) the cash account. (d) errors and omissions.
In reference to the long-run firm competitive equilibrium diagram, which of the following statements is INCORRECT?
A) In the long run, the firm has no incentive to alter its scale of operations. B) Because profits must be zero in the long run, the firm's short-run average costs (SAC) must equal P at Qe, which occurs at minimum SAC. C) In the long run, the firm operates where price, marginal revenue, marginal cost, short-run minimum average cost, and long-run minimum average cost all are equal. D) In the long run, this firm must be part of a constant-cost industry, because its marginal revenue curve is perfectly elastic.
Pecuniary is a term that means ______.
a. having to do with money b. having to do with pollution c. effective d. ineffective
According to the textbook, middlemen:
A. provide value through information and coordination. B. add no value to economic activity. C. only add value if the consumer gets a good deal. D. only add value to themselves.