In a market with positive externalities,
A) the efficient level of production is less than what competition will obtain.
B) the efficient level of production is equal to what competition will obtain.
C) the efficient level of production is more than what competition will obtain.
D) there cannot be an efficient level of production.
C
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The concept of a risk premium applies to a person that is
A) risk averse. B) risk neutral. C) risk loving. D) all of the above
Antipoverty programs funded by taxes on the wealthy are sometimes advocated on the basis of the benefits principle
a. True b. False Indicate whether the statement is true or false
What is the best measure of the value of output of an economy?
A. GDP B. GNP C. NNP D. the GDP deflator
Which statement about the multiplier is correct?
A. If a $20 billion increase in spending creates $20 billion of new income in the first round of the multiplier process and $15 billion in the second round, the multiplier in the economy is 5 B. If a $40 billion increase in spending creates $40 billion of new income in the first round of the multiplier process and $20 billion in the second round, the multiplier in the economy is 4 C. If a $60 billion increase in spending creates $60 billion of new income in the first round of the multiplier process and $50 billion in the second round, the multiplier in the economy is 5 D. If an $80 billion increase in spending creates $80 billion of new income in the first round of the multiplier process and $60 billion in the second round, the multiplier in the economy is 4