If the consumption of a good yields external benefits, then
A. The social demand is greater than the market demand.
B. The social demand is less than the market demand.
C. The social demand is equal to the market demand.
D. There is neither social demand nor market demand for the good.
Answer: A
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In an oligopoly, firms can increase their market power by
A) undertaking heavy advertising expenditure. B) colluding to set prices. C) selling to buyers who have market power. D) pursuing dominant strategies.
You are the manager of a firm that sells its product in a competitive market at a price of $50. Your firm's cost function is C = 40 + 5Q2. Your firm's maximum profits are:
A. 85. B. 125. C. 100. D. 250.
According to the textbook, what are the two key political functions of government in a market economy?
What will be an ideal response?
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles
A. increases. B. initially increases, then decreases. C. decreases. D. remains constant.