If Florida issues an alligator hunting permit to Jackson, who values an alligator hunt at $2,500, instead of Oliver, who values an alligator hunt at $4,000, the $1,500 difference in values is
A) a deadweight loss.
B) a negative externality.
C) a transactions cost.
D) the social cost of the alligator hunt.
A
You might also like to view...
Banks require collateral for loans in order to
A) ensure that borrowers have significant amounts of their own funds invested in their businesses. B) charge higher interest rates on loans. C) reduce their tax liability on the interest they collect on loans. D) reduce the total amount they are obliged to lend to any one borrower.
In 2000, there were around _____ charter schools in the United States
a. 1,000 b. 5,000 c. 10,000 d. 20,000
Since a monopoly faces a downward-sloping demand curve,
a. then, as Adam Smith wrote, "the price of monopoly is upon every occasion the highest which can be got." b. price always exceeds average revenue. c. marginal revenue increases as output increases. d. the monopolist is a price maker.
For a typical firm, fixed costs increase in direct proportion to the increases in output
a. True b. False Indicate whether the statement is true or false