If there is a negative externality associated with the production of chewing gum, then the most efficient allocation of resources in gum production occurs at the intersection of the
a. demand curve and the private cost curve
b. demand curve and the externality curve
c. demand curve and the social cost curve
d. social cost curve and the private cost curve
e. private cost curve and the externality cost curve
C
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If the isoquants are straight lines, then
A) inputs have fixed costs at all use rates. B) the marginal rate of technical substitution of inputs is constant. C) only one combination of inputs is possible. D) there are constant returns to scale.
The term "business fluctuations" refers to
A) changes in overall business activity, as evidenced by changes in national income, employment, and the price level. B) changes in the general price level from inflation to deflation, or vice versa. C) changes in the full employment level of economic activity. D) changes in the value of the dollar.
According to the graph shown, if this were depicting an autarky, the equilibrium price would be:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. $10.
B. $14.
C. $17.
D. $4.
If protective import-restricting quotas are imposed by a country, all of the following groups benefit EXCEPT
A. domestic producers in the affected industry. B. importers that are able to obtain the rights to sell imported items in the affected industry. C. employees of domestic producers in the affected industry. D. domestic consumers in the affected industry.