Suppose that in the market for paper, demand is p = 100 - Q. The private marginal cost is MCp = 10 + Q. Pollution generated during the production process creates external marginal harm equal to MCe = Q. What is the socially optimal level of output?
A) 20
B) 25
C) 30
D) 45
C
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The vertical distance between the average variable cost curve and the average total cost curve equals average fixed cost
Indicate whether the statement is true or false
When, in the game in Scenario 13.14, the strategy that would not be chosen under any circumstances is removed, what is left is a
A) Battle of the Sexes game. B) Matching Pennies game. C) Prisoners' Dilemma game. D) Beach Location game. E) constant-sum game.
Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units. Which of the following are true?
a. VC rise by $1,800 b. VC rise by $0 c. VC rise by $300 d. VC rise by $1,500
International trade is most likely to occur whenever
a. one of the trading nations is self-sufficient b. all of the trading nations are self-sufficient c. one of the trading nations gains from trade d. each of the trading nations gains from trade e. labor is cheaper abroad