A pure private good is one
a. that is nonrival and nonexcludable
b. that is rival but excludable
c. that is rival and excludable
d. that is nonrival but excludable
e. one whose production imposes a cost on third parties
C
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A graph of total profits is always likely to be positively sloped throughout its length.
Answer the following statement true (T) or false (F)
Why is the optimal quantity of pollution not less than the point at which the marginal benefit equals the marginal cost?
A. Below that point the value that people place on less pollution is less than the cost of reducing the pollution. B. Below that point firms will have to reduce the quantity that they are currently producing and lower the price. C. The point of intersection occurs at a low level of pollution. D. There are no external costs below that level.
Which statement is true regarding a market in equilibrium
a. There is a shortage of the good. b. There is a surplus of the good. c. Neither demanders or suppliers are satisfied. d. Both demanders and suppliers are satisfied.
At the midpoint of a linear, downward-sloping demand curve, the price elasticity of demand is
A) greater than one. B) equal to one. C) less than one but greater than zero. D) zero. E) infinite.