Suppose a state discovered chemical compounds in their water. The source of these chemicals is the waste discharges of industrial plants in another state. This is an example of a(n):
A. market failure where the market price of the output of these industrial plants exceeds the social cost of producing these goods.
B. private cost imposed by the industrial plants of another state.
C. externality where the marginal social costs of producing these industrial goods differ from the marginal private costs.
D. negative externality that could be corrected with a subsidy to the plants discharging the waste.
Answer: C
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Answer the following statement(s) true (T) or false (F)
1. When a game has more than one Nash equilibrium, it is unlikely that a stable equilibrium will ever be reached. 2. The copycat game does not have a pure strategy Nash Equilibrium. 3. When mixed strategies are allowed, the Copycat Game does have a Nash equilibrium. 4. Nash equilibrium is a normative concept. 5. For an outcome to be Pareto optimal, the players' total payoff must be as large as possible.
Differentiate between a pure strategy and a mixed strategy
What will be an ideal response?
What is property income?
What will be an ideal response?
If the interest rate is below the equilibrium interest rate, then the quantity __________ of money exceeds the quantity __________ of money, and there is a __________ of money
A) supplied; demanded; shortage B) supplied; demanded; surplus C) demanded; supplied; shortage D) demanded; supplied; surplus