The market overproduces goods that have external costs because producers:
A.) Do not experience the full costs of production for these goods.
B.) Must bear higher costs than society experiences for these goods.
C.) Expect the government to subsidize these goods.
D.) Cannot compete with the government in producing these goods.
A.) Do not experience the full costs of production for these goods.
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Which of the following is directly accounted for in the calculation of GDP?
A) the value of one hour of leisure as measured by the hourly wage one would otherwise earn by working B) the value of repairing your own kitchen sink as measured by the average rates charged by local plumbers C) cash earnings from an illegal poker game D) improvements in quality of life from the reduction of pollution E) None of the above items is accounted for in GDP.
Refer to the above table. Given the demand and cost schedules, what is the profit-maximizing price for this monopolist?
A) $9 B) $12 C) $11 D) $10
A closed shop is an agreement whereby
a. employers promise not to layoff workers during recessions. b. employees are forbidden from joining a union. c. employers pledge not to replace workers with machines. d. employees must join a recognized union as a condition of employment.
The firm's expansion path records:
a. profit-maximizing output choices for every possible price. b. cost-minimizing input choices for all possible output levels for when input rental rates expand along with production. c. cost-minimizing input choices for all possible output levels for a fixed set of input prices. d. cost-minimizing input choices for profit-maximizing output levels.