If there are both external benefits and external costs associated with the production and consumption of a good, and the external benefits are equal in magnitude to the external costs,
a. More than the efficient amount is being produced
b. Less than the efficient amount is being produced
c. the efficient amount is being produced
d. We do not know whether the efficient amount, or more or less, is being produced.
c
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"If the marginal product of labor curve slopes downward, then the average product of labor curve necessarily must slope downward." Explain whether the previous statement is correct or incorrect
What will be an ideal response?
When the marginal tax rate equals the average tax rate, the tax is
a. proportional. b. progressive. c. regressive. d. egalitarian.
An increase in the supply of money will lead to ____ in equilibrium real GDP and ____ in equilibrium price level.
A. an increase; an increase B. an increase; a decrease C. a decreases; an increase D. a decrease; a decrease
Price discrimination is often used by businesses. Explain the conditions under which price discrimination is practiced
What will be an ideal response?