What can the government do to solve the problem of excessive use of common resources?
Government can impose regulations or taxes to reduce consumption of a common resource. In some cases, government can transform the common resource into a private good.
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When a firm experiences increasing returns to scale
A) its AFC will decrease. B) its AFC will increase. C) its AC will increase. D) its AC will decrease.
Which of the following is true? a. At below the natural rate of unemployment, the economy is considered to be beyond full employment. b. At above full employment, the economy is producing more than potential output
c. At above full employment, unemployment would be below its natural rate. d. All of the above are true.
In the contestable market oligopoly model, firms ________ produce where price exceeds marginal cost.
A. are not legally allowed to B. do not always C. never D. always
In the above figure, the profit-maximizing output for this single-price monopoly is ________ units and the price is ________
A) 200; $10 B) 300; $20 C) 500; $50 D) 200; $30 E) 300; $30