The desirable level of output in a perfectly competitive market if there exists a detrimental externality is
A. the point at which MSC curve intersects the marginal revenue curve.
B. the point at which MSC intersects the MPC.
C. the point at which MSC intersects the marginal private benefit curve.
D. the point at which marginal revenue curve intersects the MPC.
Answer: A
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Which of the following statements is FALSE?
A. Included in the firm's short-run production function are both fixed and variable inputs. B. An efficient firm can obtain more output than the production function shows. C. The production function shows the technical relationship between a firm's inputs and outputs. D. The production function presents the technically efficient methods of combining inputs to produce output.
Economic freedom is a precondition for economic growth. Which of the following is a characteristic of economic freedom?
i. A democratic form of government ii. Property rights must be protected. iii. The government must support and pay for inventions and innovations. A) i only B) ii only C) Both ii and iii D) Both i and ii E) Both i and iii
Under a fixed exchange rate regime, if a country's central bank runs out of international reserves, it cannot keep its currency from
A) depreciating. B) appreciating. C) deflating. D) inflating.
Explain the difference between the Moving Average and Exponential Smoothing approaches to forecasting
What will be an ideal response?