Street entertainers face the free-rider problem when they perform because of the:
A. Law of Demand
B. Diminishing marginal utility
C. Nonexcludability characteristic
D. Rivalry characteristic
C. Nonexcludability characteristic
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Adam Smith’s discussion of the production in a pin factory illustrates the law of comparative advantage.
Answer the following statement true (T) or false (F)
The above figure represents the cost and demand curves for a natural monopoly that is regulated using a marginal cost pricing rule
a) What is the quantity? b) What price is charged? c) What area represents the consumer surplus when the firm is regulated using a marginal cost pricing rule? d) What distance represents the firm's loss per unit when the firm is regulated using a marginal cost pricing rule?
Consider the following two statements to answer this question:
(1) The bubble policy allows a facility to measure its emissions as an average of all emission points from that facility. (2) Netting was developed as a trading program to control emissions in PSD areas. a. (1) is true and (2) is false c. (1) is false and (2) is true b. both (1) and (2) are false d. both (1) and (2) are true
Which of the following is a distinction between general and specific human capital?
A. General human capital consists of training and education that is valued by different firms, whereas specific human capital is more valuable to the current employer. B. General human capital leads to self-selection on the basis of risk preference, whereas specific human capital leads to the adverse selection problem. C. General human capital enables workers to earn compensating wage differentials, whereas workers with specific human capital earn the competitive wage rate. D. General human capital leads to higher labor costs, whereas specific human capital leads to higher turnover costs.