In the case of externalities, government can use taxes and subsidies to turn an inefficient outcome into an efficient outcome.
Answer the following statement true (T) or false (F)
True
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Economists say that a firm has a normal profit when:
a. it earns a return of at least 10 percent. b. its accounting profit is positive. c. it can pay all its variable costs. d. its economic profit is zero.
The Coase Theorem states that there is a single unique way to assign property rights if the private sector is to achieve environmental efficiency
a. True b. False Indicate whether the statement is true or false
Would the owner of a profit-maximizing fast-food establishment hire another worker for $55 per day if that worker added faster service, increasing sales and revenue by $50 per day? Why or why not?
Which of the following is true if there is a surplus of loanable funds?
What will be an ideal response?