The Coase theorem suggests that taxes should be enacted to alleviate the effects of negative externalities
a. True
b. False
Indicate whether the statement is true or false
False
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The law of diminishing marginal returns states that
a. long-run average cost declines as output increases b. if the marginal product is above the average product, the average will rise c. as units of a variable input are added to a given amount of fixed inputs, the marginal product of the variable input eventually diminishes d. as a person consumes more of a good, the marginal satisfaction from that good eventually diminishes e. if marginal product is positive, total product rises
Suppose the market demand for good X is given by QXd = 20 - 2PX. If the equilibrium price of X is $5 per unit then consumers' expenditure on X is
A. $50. B. $25. C. $5. D. cannot be determined from the information contained in the question.
Consumers can reduce their information disadvantage by investigating consumer satisfaction surveys.
Answer the following statement true (T) or false (F)
The "paired observation" of (-10, -6) means
A. x = -10, y = -6. B. that the distance between the two points will be 16. C. the origin is at -10 and -6. D. x = -6, y = -10.