When both internal and external costs for using a scarce resource are included, then there is
A) an increase in the production of the good.
B) a negative externality.
C) an increase in the price of the good.
D) a positive externality.
C
You might also like to view...
A decrease in the wage rate causes
A) a decrease in labor's productivity. B) a rightward shift of the firm's labor demand curve. C) a leftward shift of the firm's labor demand curve. D) an increase in the quantity of labor demanded.
To decrease buyer power, the firm can
a. Differentiate its product b. Decrease dependency on a single buyer c. Sell its products in locations with multiple buyers d. All of the above
Suppose a risk-neutral power plant needs 10,000 tons of coal for its operations next month. It is uncertain about the future price of coal. Today it sells for $60 a ton but next month it could be $50 or $70 (with equal probability). How much would the power plant be willing to pay today for an option to buy a ton of coal next month at today's price? (Ignore discounting over the short period of a
month.) a. 5 b. 4 c. 3 d. 0
Cyclical unemployment is primarily caused by
a. a large proportion of youthful workers in the labor force. b. fluctuations in aggregate demand. c. a lack of training on the part of job seekers. d. the failure of job seekers to search adequately for the available jobs.