Which of the following activities can create an external cost?
a. Honking continuously while driving past a hospital.
b. Reducing the use of plastic carry bags while shopping.
c. Burying garbage under the soil and planting trees on it.
d. Using smog controls on private cars.
A
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If Jessie studies economics for two hours instead of going to the movies with her friends, then
A) the benefit of studying is the missed movie. B) the opportunity cost of studying is the missed movie. C) Jesse definitely is making a rational choice. D) Jessie is ignoring a sunk cost. E) Jessie is not responding to any incentives.
In an open outcry English auction, ________
A) the bidders begin the bidding process with a high starting bid B) the auctioneer begins the bidding process with a high starting bid C) the auctioneer begins the bidding process with a low starting bid D) the bidders decide the starting bid
Assuming the firm in the graph is producing Q1 and charging P3, it is likely showing the cost and revenue curves of a firm in:
These are the cost and revenue curves associated with a firm.
A. the long run, and economic profits are zero.
B. the short run, and accounting profits are negative.
C. the long run, and accounting profits are zero.
D. the short run, and economic profits are positive.
The long-run exit rule is to exit the industry if:
A. P > AVC. B. P < AVC. C. P < ATC. D. P > ATC.