A good which has social costs that exceed private costs has a price
A) equal to marginal social cost.
B) that is too low.
C) that is too high.
D) that is inefficient because price exceeds marginal social cost.
B
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Suppose the inflation rate target is "0" and the long run federal funds target is also "0." Calculate the federal funds rate if the current inflation rate is 5% and real output is 4.5% below trend output
A) 2.25% B) 5.25% C) 0.5% D) 0.25%
Economic profit is defined as
a. price minus the sum of average fixed and marginal cost b. total revenue minus total implicit cost c. total revenue minus the average total cost d. total revenue minus the sum of implicit and explicit costs e. consumer surplus minus total explicit cost
Suppose a market is dominated by three firms. This type of market is called:
A.) Perfect competition. B.) A monopoly. C.) Monopolistic competition. D.) An oligopoly.
A Chinese restaurant buys 10 cups of rice for $1; soy, fish and oyster sauces for $1 each; and assorted vegetables for $20. They create 10 meals with these ingredients and sell each one for $5. How much does this process contribute to GDP?
A. $27 B. $23 C. $73 D. $50