Due to externalities generated by home landscaping, its price
A) is above the optimal level, and quantity that is below the optimal level.
B) is below the optimal level, and quantity that is above the optimal level.
C) and quantity traded are both above the optimal level.
D) and quantity traded are both below the optimal level.
E) must fall in order for the market to reach equilibrium.
D
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The reason that the Fisherman's Friend restaurant in Stonington, Maine had a monopoly on selling seafood dinners in that town is most likely due to
A) no competitors apparently found the profit level attractive enough to enter the market. B) the restaurant owned all the fresh seafood in the state. C) a government-imposed barrier. D) occupational licensing.
The most threatening and damaging detrimental externality at issue today is:
a. The explosion and oil spill at the Deepwater Horizon b. the continued pollution of city air due to factory emissions c. water shortages d. global warming
If the federal government had not bailed out the large financial institutions during the financial crisis of 2008-2009, the negative wealth effect would likely have been larger.
Answer the following statement true (T) or false (F)
Monopolistic competition is a market in which ________ firms produce ________ goods and services
A) many; identical B) many; differentiated C) few; differentiated D) few; identical