In the case of a positive externality, the entire demand curve lies
A. above the entire marginal social benefit curve.
B. below the entire marginal social benefit curve.
C. above the entire supply curve.
D. below the entire supply curve.
E. b and c
Answer: B
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Natural monopolies are the natural result of:
A. geographical happenstance. B. government regulations intended to encourage competition. C. competition in markets where economies of scale exist over the relevant range of output. D. fierce competition from firms in a market.
Which of the following is the best example of a variable cost?
a. property taxes b. lease payments for equipment rental c. rent on office space d. wages for hourly workers e. interest on outstanding loans
Refer to the above table. The price of the product being produced by this resource:
a. Decreases as production increases b. Increases as production increases c. Cannot be discerned from the given data d. Is constant at all levels of production
Refer to the scenario above. People will earn a net benefit of ________ if the discount weight of the future benefit is 1/10
A) 950 utils B) 930 utils C) -600 utils D) -950 utils