Which of the following statements is true?
a. Externalities can never refer to costs borne by the seller
b. Both external costs and external benefits can never exist for the same good.
c. Externalities can never lead to under-production of a specific good.
d. External benefits can never exceed external costs.
a
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The ____________ was designed to raise revenue and achieve mercantilist goals, while the ____________ was simply intended to raise revenue
a. Sugar Act; Tea Act b. Tea Act; Molasses Act c. Sugar Act; Stamp Act d. Stamp Act; Hat Act
Explain the difference between the international trade effect, which leads to a movement along a given AD curve, and an increase in foreign incomes, which leads to a shift to a new AD curve
Which of the following steps should Bufton Dairy, a firm selling dairy products, take in order to earn positive economic profits?
a. Offering products that are identical to those of its rivals b. Producing at the highest point on its average total cost curve c. Acquiring most of its rivals d. Selling only one dairy product
In which of the following cases was the firm a natural monopoly at the beginning of the case but no longer a natural monopoly when the case resolved?
A. IBM case B. Alcoa case C. Standard Oil case D. AT&T case