A policy that directly targets the externality:
A. encourages innovation, which matches the goal to stop production of the externality.
B. gives firms incentives to find different ways to do things, rather than pay for the right to create the externality.
C. Both of the above statements is true.
D. None of these statements are true.
Answer: C
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In the figure above, the curve labeled "W" can be a
A) monopoly's demand curve. B) monopoly's marginal revenue curve. C) perfectly competitive firm's demand curve. D) perfectly competitive firm's marginal revenue curve.
Suppose a $30 billion increase in government purchases increased GDP by $120 billion, what is the value of the MPC?
a. 4.00 b. 0.75 c. 0.25 d. 0.50 e. 0.33
Given the demand curve in this graph, if price were $1.00, how much is consumer surplus?
A. $0
B. $1.50
C. $5.00
D. $10.50
Refer to the below table. The marginal revenue product of the fourth unit of input is approximately:
