If production of a good creates beneficial externalities, a perfectly competitive market will produce
A. less output than would maximize profit.
B. more output than would maximize profit.
C. less output than is socially efficient.
D. more output than is socially efficient.
Answer: C
You might also like to view...
A production function assumes a given
A) technology. B) set of input prices. C) ratio of input prices. D) amount of capital and labor. E) amount of output.
A conglomerate merger involves
a. two companies in the same line of business joining together b. a buyer's expanding operations forward toward the final customer c. a buyer's expanding operations backward toward the source of raw material d. companies in unrelated lines of business coming together e. b and c
In the circular flow diagram, saving
A. is a leakage and investment is an injection. B. and investment are both injections. C. is an injection and investment is a leakage. D. and investment are both leakages.
A perfectly inelastic demand:
A. means people will quickly change the quantity they purchase when price changes. B. means people will not respond to any change in price. C. is demonstrated by a perfectly horizontal demand curve. D. has an absolute value greater than 1.