What do externalities cause markets to do?
a) benefit producers at the expense of consumers
b) cause markets to operate more equitably
c) fail to allocate resources efficiently
d) cause price to be different than equilibrium price
Ans: c) fail to allocate resources efficiently
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Assuming all else equal, when the labor demand curve shifts to the left, ________
A) output falls B) unemployment falls C) inflation rises D) equilibrium wage rises
For a good whose production creates a pollution, when marginal social cost equals marginal social benefit, then
I there is no pollution. II resources are utilized efficiently. A) I only B) II only C) neither I nor II D) both I and II
Customer discrimination is illegal in the United States
a. True b. False Indicate whether the statement is true or false
What characteristic of a competitive market has made the "long run pretty short" in the market for iPhone apps?
A) few firms in the market B) identical products C) ease of entry D) blocked entry