If a country has a straight (downward sloping) production possibilities frontier, then production is said to be subject to
A) constant opportunity costs.
B) decreasing opportunity costs.
C) first increasing and then decreasing opportunity costs.
D) increasing opportunity costs.
A
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When a firm ignores external costs:
A. it fails to maximize its profits. B. it is willing to produce too little of the good at the given price. C. the good is priced too cheaply in equilibrium. D. it also ignores external benefits.
According to ________, in a market with an externality, private parties would voluntarily negotiate an efficient outcome without government intervention
A) A. C. Pigou B) John Maynard Keynes C) Adam Smith D) Ronald Coase
The marginal cost curve shows the per-unit cost associated with various levels of output.
Answer the following statement true (T) or false (F)
Why is a family hiring a lawn-care service part of the product market?
a. The mowing firm is presumably owned by a household that purchases products. b. The lawn care firm must purchase products in order to complete the job. c. The mowing firm is providing a product to a household in the form of a service. d. The lawn care firm is providing capital to households by paying its workers’ wages.