Refer to the above figure. S1 is the supply curve that includes only private costs. S2 is the supply curve that includes social costs. The free market rate of output is ________ and the corrected, socially optimal amount of output is ________
A) Q4; Q1
B) Q2; Q1
C) Q4; Q2
D) Q2; Q4
C
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A movement along a demand curve from one price-quantity combination to another is called a:
A. change in demand. B. change in quantity supplied. C. shift in the demand curve. D. change in quantity demanded.
Substitution of one commodity for another depends on all of the following factors, EXCEPT:
a. prices of the goods available to the consumers. b. tastes and preferences of the buyers. c. the information buyers possess. d. market protocols.
Because there are many sellers in a competitive market, individual firms are unable to maximize profits
a. True b. False Indicate whether the statement is true or false
A firm's marginal cost has a minimum value of $4, its average variable cost has a minimum value of $6, and its average total cost has a minimum value of $7 . Then the firm will shut down in the short run once the price of its product falls below
a. $7. b. $6. c. $4. d. We do not have enough information to answer the question.