Describe how the government differs from private firms and individuals participating in a market
Please provide the best answer for the statement.
Private firms and individuals participate in the market voluntarily. Firms participate if their willingness to pay is below or equal to the market price, if not they will remain out of the market. Individuals participate if their willingness to buy is equal to or above the market price, if not they will remain out of the market. The government differs from these groups because it has the legal right to enforce involuntary transaction. For example, car insurance must be purchased by all drivers. If a driver does not have proof of insurance they can receive fines.
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Long Beach Island, off the coast of New Jersey, is considering building a system of satellite towers that will enhance communication during emergencies such as hurricanes
The efficient quantity of satellite towers is definitely the quantity of such that the A) marginal social cost is equal to the marginal social benefit. B) marginal private cost is equal to the marginal social benefit. C) marginal social cost is less than the marginal social benefit. D) marginal private cost is less than the marginal social benefit.
For complementary goods, an increase in the price of one shifts the demand curve for the other to the right
Indicate whether the statement is true or false
Exhibit 13-3 A monopolist
In Exhibit 13-3, if this industry is regulated and the regulatory commission sets price equal to marginal cost, then:
A. this firm would earn excess profit. B. price would equal ATC. C. the firm would suffer losses. D. revenue would just be sufficient to cover costs.
Cost pressures are most intense
A. At low rates of output. B. As the economy approaches capacity. C. When unemployment falls. D. None of the choices are correct.