The figure above illustrates the marginal private cost and the marginal social cost to the city of Seattle for each rock concert that is offered. If 5 concerts are put on, then the
A) marginal external cost will be greater than the marginal social cost.
B) marginal external cost will be greater than the marginal private cost.
C) marginal external cost will equal the marginal private cost.
D) marginal social cost will equal the marginal external cost.
E) marginal external cost will equal zero.
B
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The total producer surplus in the entire market is given by the:
A) product of the individual seller's surplus. B) sum of all the individual sellers' producer surplus. C) area between the market supply curve and the market demand curve. D) area between the market demand curve and the price line.
The rivalry versus nonrivalry issue is
A. relevant to the issue of market failure. B. not relevant to the issue of market failure. C. relevant to the free-rider problem. D. a and c E. b and c
Until the creation of the Marine Hospital Service in 1918, the primary role of the federal government in health care was to quarantine ships and control ports to prevent epidemics
a. True b. False
A profit-maximizing monopolist, if producing at all, chooses a level of output where: a. total revenue is maximized
b. total cost is minimized. c. average total cost is minimized. d. marginal revenue equals marginal cost.