If the social cost is greater than the private cost in a particular market, the private equilibrium will be at a quantity:
A. equal to the socially optimal level.
B. less than the socially optimal level.
C. greater than the socially optimal level.
D. greater than or less than the socially optimum level, depending on the size of the external costs.
C. greater than the socially optimal level.
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Explain why low-skilled workers find that their employment opportunities are less with a minimum wage
What will be an ideal response?
Refer to the scenario above. Suppose Pat can impose a fine of $70 if Joe chooses to keep the money and the cost of imposing such a fine to Pat is $10. Which of the following is likely to happen if Pat is known to be vengeful?
A) Joe will choose to split the money into two parts if Pat gives it to him. B) Joe will choose to keep the entire money for himself if Pat gives it to him. C) Pat will not give the money to Joe. D) An unique equilibrium will not occur.
When U.S. national saving rises, domestic investment also necessarily rises
a. True b. False Indicate whether the statement is true or false
A U.S. automobile dealer has ordered a fleet of Japanese cars worth 10 million yen. The terms of payment is C.O.D. (cash on delivery). At the time the order was placed, the exchange rate was 100 yen per U.S. dollar. When the fleet arrived the exchange
rate had become 200 yen per U.S. dollar. A) This change in the foreign exchange rate will hurt the U.S. importer. B) This change in the foreign exchange rate will hurt the Japanese exporter. C) This change in the foreign exchange rate will benefit the U.S. importer. D) This change in the foreign exchange rate will benefit the Japanese exporter.