Externalities between two firms can be "internalized" if: I. The two firms merge. II. Bargaining costs are zero. III. The externalities affect each firm equally. IV. Marginal costs for both firms are constant. Which statement(s) correctly complete the sentence?
a. Only II
b. All except III
c. I and II, but not III and IV
d. I and IV, but not II and III
c
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Slowdonia's current growth rate of real GDP per person is 2 percent a year. How long will it take to double real GDP per person?
A) half a year B) approximately 10 years C) 28.6 years D) 35 years
Which of the following statements is false?
A) An implicit cost is a nonmonetary opportunity cost. B) Economists consider all costs to be implicit costs. C) Economic costs include both accounting costs and implicit costs. D) An explicit cost is a cost that involves spending money.
An economy that grows too slowly fails to raise living standards
Indicate whether the statement is true or false
In the Taylor rule, does the target for the federal funds rate respond differently for a recession caused by a decrease in aggregate demand and for a recession caused by a decrease in short-run aggregate supply? Explain whether there is or is not a
difference in how the target for the federal funds rate changes.