The marginal social cost of producing the last unit of a good is $1.10 while the consumers' willingness to pay for the last unit is $0.80. The deadweight loss from the production of the last unit of the good in equilibrium is ________
A) $1.10
B) $1.90
C) $0.50
D) $0.30
D
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Economists assume that people are motivated by
A) a desire to please others. B) the interests of the community at large. C) self-interest. D) morally correct behavior.
The greenhouse effect is largely caused by
A. Human activity. B. The federal government. C. Industrial firms. D. The release of carbon dioxide into the atmosphere.
Everyone in the neighborhood has been complaining about the deteriorating condition of the park, but nobody has cleaned it up. Why not?
A. No single person's benefit from cleaning the park exceeds that person's cost of cleaning it. B. There is an excess demand for parks in the neighborhood. C. There is an excess supply of parks in the neighborhood. D. The social benefit of cleaning the park exceeds the social cost of cleaning it.
Higher isocost lines correspond to higher
A) profits. B) sales revenue. C) input prices. D) total costs of production.