Suppose that coal producers create a negative externality equal to $5 per ton of coal. What is the relationship between the equilibrium quantity of coal and the socially optimal quantity of coal?
a. They are equal.
b. The equilibrium quantity is greater than the socially optimal quantity.
c. The equilibrium quantity is less than the socially optimal quantity.
d. There is not enough information to answer the question.
b
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Explain how price can be a regulator, that is, how it can coordinate the plans of buyers and sellers
What will be an ideal response?
If a perfectly competitive firm like the one depicted in Figure 9-3 produces 575 units
a.
its profit will be larger than if it produces only 475
b.
its profit will be exactly the same as if it produces 475
c.
its profit will be smaller than if it produces only 475
d.
it will be forced to shutdown
e.
its profit will be smaller than if it produced 475 but it will still make a profit.
First, define the LM curve. Second, explain why it has its particular shape
What will be an ideal response?
Charter One, Pentagon Federal Credit Union, and Boeing Employees Credit Union are all primarily:
A. commercial banks. B. thrifts. C. insurance companies. D. pension funds.