When a steel producer pollutes the air, economists argue that there is
A. a positive externality.
B. an external cost.
C. a cost paid solely by the steel producer.
D. efficiency, if production is at its maximum level.
Answer: B
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In which case do firms have some control over their price?
a. monopolistic competition and perfect competition b. oligopoly but not perfect competition c. perfect competition but not monopoly d. neither monopolistic competition nor oligopoly
The following diagram shows the demand curve for neckties. At point a, total expenditure on neckties is:
a. ?$45. b. ?$20. c. ?$9. d. ?$5. e. ?$26.
When we use the term fixed investment, we include in investment
A. the purchase of stocks and bonds. B. the purchase of equipment and other capital goods. C. the purchase of corporate bonds, but not government bonds. D. the purchase of intangible goods.
When marginal utility is zero, total utility is
A) increasing. B) at its maximum. C) at its minimum. D) decreasing.