When there is a positive externality associated with the watering of one's lawn, the free market results in:
a. not enough lawn watering.
b. too much lawn watering.
c. the socially optimal level of lawn watering.
d. people watering each other's lawns.
e. government subsidies for lawn watering.
a
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Last year, the Pottery Palace supplied 8,000 ceramic pots at $40 each. This year, the company supplied the same quantity of ceramic pots at $55 each. Based on this evidence, The Pottery Palace has experienced
A) an increase in the quantity supplied. B) a decrease in supply. C) a decrease in the quantity supplied. D) an increase in supply.
The Internet might alter incentives of firms in locating their stores
Indicate whether the statement is true or false
In the case of pure monopoly:
a. one firm is the sole producer of a good or service which has no close substitutes b. the firm's profit is maximized at the price and output combination where marginal cost equals marginal revenue c. the demand curve is always elastic d. a and b only e. a, b, and c
If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:
A. short-run supply shock. B. long-run supply shock. C. long-run demand shock. D. short-run demand shock.