In the case of negative externalities in production, the firm's internal costs:
a. exceed the external costs.
b. are less than the external costs.
c. equal the external costs.
d. understate the true cost of producing the product.
e. overstate the true cost of producing the product.
d
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Everything else the same, in the foreign exchange market which of the following increases the demand for U.S. dollars and shifts the demand curve rightward?
A) The U.S. interest rate rises. B) The U.S. exchange rate falls. C) The Japanese interest rate rises. D) The U.S. exchange rate rises. E) The expected future exchange rate falls.
In the above figure, at which point on the demand curve is the price elasticity of demand equal to 1?
A) a B) b C) c D) It is impossible to say at which point the elasticity equals one.
Refer to Scenario 3 . What is the maximum potential increase in coconut production and maximum potential increase in hut production described in the previous question?
What will be an ideal response?
Why is it not efficient to eliminate all pollution?
What will be an ideal response?