Suppose planting flowering shrubs creates a positive externality equal to $7 per shrub. Further suppose that the local government offers a $7 per-shrub subsidy to planters. The number of shrubs that are planted is then
a. less than the socially optimal quantity.
b. greater than the socially optimal quantity.
c. equal to the socially optimal quantity.
d. There is not enough information to answer the question.
c
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The table above shows the marginal costs and marginal benefits of college education. If the market for college education is perfectly competitive and unregulated, at the equilibrium quantity, the marginal social benefit is
A) zero. B) $14,000. C) $19,000. D) $16,000.
The effect of an increase in aggregate supply is a(n):
A. increase in the general level of prices and a decrease in real output. B. increase in the general level of prices and an increase in real output. C. decrease in the general level of prices and a decrease in real output. D. decrease in the general level of prices and an increase in real output.
Consider a Cournot oligopoly consisting of four identical firms producing good X. If the firms produce good X at a marginal cost of $7 per unit and the market elasticity of demand is ?2, determine the profit-maximizing price.
A. $12 per unit B. $6 per unit C. $8 per unit D. $10 per unit
Which type of occupation has the fastest growth expected from 2010 to 2020?
A. Manufacturing B. Service C. Construction D. Mining