All of the following illustrate how government can correct for positive externalities EXCEPT
A. regulation.
B. government financing and production.
C. charging effluent fees.
D. subsidies.
Answer: C
You might also like to view...
If an economic agent's returns to entrepreneurship is likely to be lower than his opportunity cost of entrepreneurship:
A) he will choose to be an entrepreneur. B) he will always make profits if he chooses to be an entrepreneur. C) he will always make losses if he chooses to be an entrepreneur. D) he will not choose to be an entrepreneur.
The single-price monopolist shown in the above figure could increase its economic profit if
A) it became a price discriminator. B) its costs of production decreased. C) the demand for its good increased. D) any or all the above were to occur.
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.
Refer to the diagram for a pure monopolist. Monopoly profit:
A. cannot be determined from the information given.
B. will be ae per unit sold.
C. will be bc per unit sold.
D. will be ac per unit sold.