Which of the following can lead to market failure?
a. externalities and market power
b. externalities but not market power
c. market power but not externalities
d. neither externalities nor market power
a
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In a progressive tax? system,
A. the marginal tax rate increase as income increases but the average tax rate does not change as income increases. B. the marginal tax rate and the average tax rate decrease as income levels increase and the marginal tax rate is less than the average tax rate. C. the marginal tax rate and the average tax rate are the same for every income level and the same as income increases. D. the marginal tax rate and the average tax rate increase as income levels increase and the marginal tax rate exceeds the average tax rate.
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
Discuss the political pressures associated with monetary policy. What has the United States done to try to reduce these political pressures?
Please provide the best answer for the statement.
A decrease in the marginal benefit arising from a specialized investment will cause the optimal contract length to:
A. decrease. B. increase. C. either increase or decrease. D. remain constant.