An absence of property rights often leads to market failure. When this is the case, how does society usually solve the problem?
The solution to the problem usually involves government intervention. Government can define property rights, regulate, tax, subsidize, or supply goods directly.
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In the year 2000, per pupil expenditures on education in the United States were around _____
a. $4000 b. $5000 c. $6000 d. $7000
Explain why even the most affluent people, businesses and counties never solve the problem of scarcity
What will be an ideal response?
Shellee heads up a company that has a monopoly on a solar battery technology due to a patent. Shellee wants to raise the price by 50% to increase revenue by 50%. What is she forgetting?
a. When monopolists raises prices, they are breaking the law. b. When monopolists raise prices, demand falls. c. Monopolists cannot change revenue by changing prices. d. Monopolists do not get to price their own products.
Which of the following formulas indicate that a firm should shut down?
a. (P × q) > VC b. (P × q)/q < VC/q c. (P × q) > VC/q d. (P × q)/q < VC