Private markets usually provide lighthouses because ship captains have the incentive to navigate using the lighthouse and therefore will pay for the service
a. True
b. False
Indicate whether the statement is true or false
False
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Moral hazard typically occurs because
A) people are dishonest. B) agreements sometimes create incentives that are costly to monitor. C) workers possess diminishing marginal productivity. D) workers possess adverse selection.
Of the curves displayed in the graph shown, what does curve B most likely represent?
A. Marginal cost
B. Average total cost
C. Average variable cost
D. Average fixed cost
Diseconomies of scope occur when:
A. a firm's input prices rise as it increases output. B. a firm's average cost of production rises as it increases production. C. producing two products in a single firm is more expensive than producing them in separate firms. D. a firm's average cost of production falls as it increases production.
What is the main problem with rules of origin?
What will be an ideal response?