If faced with the same cost conditions as a perfectly competitive firm, a monopoly will
a. charge a lower price than the perfectly competitive firm.
b. charge a higher price than the perfectly competitive firm.
c. charge the same price as the perfectly competitive firm.
d. refuse to operate in the short run unless an economic profit can be made.
b. charge a higher price than the perfectly competitive firm.
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The marginal social cost is
A) equal to the marginal private cost plus the marginal external cost. B) equal to the marginal private cost minus the marginal external cost. C) the same as the marginal private cost. D) the same as the marginal external cost.
If a product has zero external costs, then marginal social cost equal marginal private cost
Indicate whether the statement is true or false
A government subsidy is typically used
A) to correct a negative externality. B) to provide a government-inhibited good. C) to reduce inflation. D) to correct a positive externality.
The Clean Air Interstate Rule (CAIR)
a. established three trading programs, one for SO2 and two for NOX b. was enacted under the Obama Administration c. set emissions limits without any accompanying trading program d. all of the above e. none of the above