The efficient quantity of output of a product with external costs of production is
A) where the demand curve and the producer's supply curve intersect.
B) where the marginal social cost curve and marginal social benefit curve intersect.
C) as low as possible.
D) zero.
B
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Under the Bretton Woods system of fixed exchange rates, the price of the U.S. dollar was fixed in terms of gold and the prices of all other currencies were fixed in terms of dollars.
Answer the following statement true (T) or false (F)
Your text refers to airlines as "The Kings of Price Discrimination." Why is price discrimination common in the airline industry?
What will be an ideal response?
A customs broker or other import consultant can help an importer minimize import duties by ________.
A) bypassing duty rebates available through drawback provisions B) incurring duties by using non-bonded warehouses and foreign trade zones C) maximizing liability by improperly marking an import's country of origin D) valuing products in such a way that they qualify for more favorable duty treatment
The two main characteristics of a public good are:
A. production at constant marginal cost and rising demand. B. nonexcludability and production at rising marginal cost. C. nonrivalry and nonexcludability. D. nonrivalry and large negative externalities.