A firm is generating detrimental externalities when
A. MSC is less than MPC.
B. MSC is the same as MPC.
C. MSC is greater than MPC.
D. MPC includes some incidental costs.
Answer: C
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From the table above, which gives data about the U.S. labor market in 1933, the labor force is
A) 48 million. B) 60 million. C) 65 million. D) 100 million. E) 12 million.
Which of the following conditions holds in an economically efficient competitive market equilibrium?
A) Producer and consumer surplus are exactly equal in size. B) There are no positive and no negative external effects from consumption and production. C) The deadweight loss is positive but at a minimum. D) The marginal benefit of the last unit produced and consumed is maximized.
In its original role as lender of last resort, the Fed was supposed to: a. provide mortgage money for the poor
b. keep the money supply from drying up during economic panics. c. lend money to people in localities not served by commercial banks. d. lend money to developing nations whose own central banks had failed.
There has been a downward trend in the United States since 1980 in the ambient concentrations of
a. sulfur dioxide. b. carbon monoxide. c. lead. d. all of the above.