In a market characterized by externalities, the market equilibrium fails to maximize the total benefit to society as a whole
a. True
b. False
Indicate whether the statement is true or false
True
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A firm produces 400 units of output at a total cost of $1,200 . If total variable costs are $1,000,
a. average fixed cost is 50 cents. b. average variable cost is $2. c. average total cost is $2.50. d. average total cost is 50 cents.
Late in the 2000–2009 decade, real estate prices in the U.S. fell by a greater percentage than they had fallen since the
a. 1890s. b. 1930s. c. 1950s. d. 1970s.
If you were told that the exchange rate between the U.S. dollar and the Canadian dollar was 1.2, that would mean that Canadians would have to spend ____ to buy a $12 watch in New York City.
A. 18 Canadian dollars B. 10 U.S. dollars C. 12 U.S. dollars D. 14.4 U.S. dollars
Because people enjoy the benefits of public goods whether they pay for them or not, people are usually ________ to pay for them. This is known as the free-rider problem, and is intrinsic to ________ goods.
A. unwilling; public B. unwilling; private C. willing; public D. willing; private