Refer to the information provided in Figure 16.2 below to answer the question(s) that follow.
Figure 16.2Refer to Figure 16.2. The efficient amount of cars is
A. 25.
B. 35.
C. zero because any production results in an external cost.
D. indeterminate from the information given.
Answer: A
You might also like to view...
Recall the Application. If the decrease in price of illegal drugs is due to equal changes in demand and supply, the equilibrium quantity of drugs
A) will increase. B) will decrease. C) will not change. D) may or may not change.
If a fall in the price of good A increases the quantity demanded of good B
A) A and B are substitutes. B) A and B are complements. C) A is a substitute for B, but B is a complement to A. D) B is a substitute for A, but A is a complement to B.
The demand curve for the perfectly competitive industry normally slopes downward, unlike the perfect competitive firm. Why?
What will be an ideal response?
A merger between firms that are in the same industry is called a
A) conglomerate merger. B) horizontal merger. C) vertical merger. D) none of the above.