The market will overproduce goods that have external costs because
A. Producers cannot keep these goods from consumers who do not pay, so they have to produce greater amounts.
B. Producers experience higher costs than society.
C. Producers experience lower costs than society.
D. The government is not able to produce these goods.
Answer: C
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Refer to Table 4-14. The equations above describe the demand and supply for Pauline's Pickled Pomegranates. What are the equilibrium price and quantity (in thousands) for Pauline's Pickled Pomegranates?
A) $15 and 45 thousand B) $30 and 15 thousand C) $60 and 20 thousand D) $20 and 10 thousand
Assume that a product upgrade strategy adopted by a microwave oven manufacturer increases his marginal cost by $1.50 . If the strategy also increases the demand for the product by $3.50 per unit, total economic value will increase
Indicate whether the statement is true or false
Over coffee in the cafeteria Susan stated that the university should be run like a profit- seeking corporation. Sam correctly pointed out that she had made a ____________ statement, as Professor McSnerd had described in their economics class
a. ceteris paribus conjunctive b. normative c. macroeconomic d. positive e. microeconomic
The failure of the Argentinean currency board can be attributed to many factors, including the:
A. prices of goods Argentine exported dropped significantly in the late 1990s hurting their economy. B. failure right from the start to lower inflation. C. pegging of the Argentine peso to the euro. D. pegging of the Argentine peso to the U.S. dollar, even though the countries' economies were not that highly integrated.