An external cost in the production of a good creates a difference between the
i. costs borne by the producer and the costs borne by society in general.
ii. efficient quantity of output and the equilibrium quantity of output.
iii. marginal social cost and the marginal private cost.
A) i only
B) iii only
C) ii and iii
D) i, ii, and iii
E) i and iii
D
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A firm's total fixed cost equals $2,500 . The firm's average fixed cost at 1, 5, and 10 units of output, respectively, will be: a. $2,500, $2,500, and $2,500
b. $2,500, $500, and $250. c. $2,500, $12,500, and $25,000. d. $2,500, $1,250, and $250.
As possible income increases, consumption spending
What will be an ideal response?
Which of the following is an example of something that economists would consider a cost but accountants would not?
A. the wages paid to employees of a firm B. the wages that the owner of a firm could have earned in some alternative job C. rent paid to a business's landlord D. the cost of leather used in the production of footballs
The costs of pollution control will
A. Be borne entirely by the taxpayers in the United States. B. Always be borne entirely by the pollution producer. C. Always be passed on completely to the consumer. D. Be distributed between the producer and the consumer.