The free rider problem is the main source of market failure in the provision of nonexcludable public goods.
Answer the following statement true (T) or false (F)
True
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Suppose bad weather decreases the quantity of wheat by 12 percent. If the price elasticity of demand for wheat is 0.6, how would the crop failure affect the price of wheat? Would the crop decrease benefit or harm wheat farmers?
What will be an ideal response?
The above figure shows a firm in monopolistic competition. At the profit maximizing level of output, excess capacity for the firm is equal to
A) 0 units per day. B) 4 units per day. C) 8 units per day. D) 16 units per day.
Which of the following determines comparable worth of a particular job?
a. Cultural background of the applicants b. Gender of the candidates applying for a job c. Race of the applicants for the job d. Level of formal education required for a job e. National origin of the workers in a factory
What causes employers or employees to behave opportunistically?