If a good is produced by firms that generate external costs, the price consumers pay
A) will be efficient as long as it equals the marginal costs of the firms.
B) will be too low.
C) will be too high because the consumers end up paying the costs instead of the firm.
D) will be the correct price, but the quantity sold of the good will be too large.
Answer: B
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An important condition required for economic growth is
A) economic freedom. B) a libertarian government. C) a totalitarian government. D) a democratic government. E) the incentive to limit international trade so that all economic growth remains within the country.
What is a liquidity trap? What are the implications of a liquidity trap on monetary policy?
What will be an ideal response?
Which of the following countries averaged GDP growth (after adjusting for inflation) of at least 5% per year both from 1990 to 2000 and from 2000 to 2008, and therefore, can be grouped into the fast-growth category?
a. Cambodia b. Canada c. Japan d. Jamaica
Al and Steve are both reporters at the same newspaper. Al is black and Steve is white. Al earns less than Steve. Which of the following can explain why Al earns less?
a. Although both have BA's in Journalism, Al's K-12 and college education were of a lower quality than Steve's. b. Al has greater experience. c. Al works the night shift and Steve works the day shift. d. Al writes editorials which are very popular with customers, while Steve covers the police report which fewer subscribers read.