If positive externalities are present in a free market, ________ at any output level
A) the marginal cost of production equals the average cost of production
B) the marginal social cost of production exceeds the marginal private cost
C) the marginal private benefit from production equals marginal social benefit
D) the marginal social benefit of production exceeds marginal private benefit
D
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Scarcity implies that
A) the satisfaction of one person's want means another person's want can also be satisfied. B) the satisfaction of one person's want means another person will be more than satisfied. C) the satisfaction of one person's want means another person's want cannot be satisfied. D) no person's wants can be satisfied.
Which statement is true?
A. Welfare payments are set by the federal government and are the same for all states. B. Only the industrial states of the northeast, Midwest, and the far west have welfare programs. C. Most people receiving welfare benefits are black. D. Each state sets its own welfare payments.
For perfectly price inelastic supply,
A. either supply or demand may set the price. B. price is solely determined by demand. C. only a government can set the price. D. price is solely determined by supply.