Which of the following is true?
A) MSB = MB + Marginal external benefit.
B) MB = Marginal external benefit - MSB.
C) MB = Marginal external benefit + MSC.
D) MSB = Marginal external cost - marginal external benefit.
E) MSB = MB + Marginal external benefit - Marginal external cost.
A
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The economic profit of a perfectly competitive firm
A) is less than its total revenue. B) equals its total revenue. C) is greater than its total revenue. D) is less than its total revenue if its supply curve is inelastic and is greater than its total revenue if its supply curve is elastic.
The 19th century frontier, as technically defined in census reports, was any area
a. west of the Appalachian Mountains. b. containing more than two and less than six people per square mile. c. without a sheriff and recognized local government. d. that had not been surveyed according to provisions of the Land Ordinance of 1785.
A guarded barbed wire fence separates East and West Bovinia. Soccer players are paid twice as much in West Bovinia as in East Bovinia. This is an example of
a. inelastic supply b. a temporary resource price differential c. a permanent resource price differential d. diminishing marginal revenue product e. economic rent
If Anh's elasticity of labor supply is 1.5 and she increases her supply of labor by 5 percent, then the wage rate must have
A. Increased by 3.3 percent. B. Increased by 3.0 percent. C. Decreased by 7.5 percent. D. Increased by 7.5 percent.