In order to increase society's total welfare (social efficiency), a production process that produces a negative externality should be:
a. taxed.
b. provided by the government.
c. ignored.
d. subsidized.
a
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If a firm reacts to other firms' market decisions by anticipating how the other will then react, this is:
a. not profit-maximizing behavior b. a monopolistic competitive market c. a market with a low concentration ratio d. mutual interdependence e. collusion by definition
Advertising never makes sense for an oligopolistic firm.
Answer the following statement true (T) or false (F)
If average labor productivity decreases while population and the number of employed workers remain constant, then output per person:
A. may increase or decrease. B. increases. C. decreases. D. remains constant.
Refer to the information provided in Table 6.1 below to answer the question(s) that follow. Table 6.1Number of Hamburgers per DayTotal UtilityMarginal Utility130?252?367?476?5?4Number ofSodas per DayTotal UtilityMarginal Utility120?235?347?457?5?7Refer to Table 6.1. The total utility of five sodas per day is
A. 35. B. 64. C. 92. D. indeterminate from this information.