In the figure above, when the market is unregulated and in equilibrium, marginal social cost ________ marginal benefit, and the quantity of chemical produced is ________
A) exceeds; above the efficient quantity
B) exceeds; below the efficient quantity
C) is below; above the efficient quantity
D) is below; below the efficient quantity
E) equals; efficient
A
You might also like to view...
Use the following information to answer the question below. Cloe is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents each and hard candies cost 80 cents each. The marginal utilities derived from the consumption of each product are as shown in the following table.Number of Items Marginal Utility of Chocolates Marginal Utility of Hard Candies 1 60 150 2 50 140 3 40 120 4 30 100 5 20 80 6 10 70 7 5 50 8 0 20 Which combination would maximize Cloe's total utility given her $4 budget?
A. 0 chocolates and 5 hard candies B. 2 chocolates and 4 hard candies C. 4 chocolates and 3 hard candies D. 6 chocolates and 2 hard candies
Improvements in literacy stimulate economic growth by: a. reducing the barriers to the flow of information
b. improving the flow of resources to more productive uses. c. imparting skills, which raises labor productivity. d. doing all of the above.
If one were to consider a university as a business, the computers in the computer labs would be regarded by economists as
a. technology flows. b. mechanization flows. c. part of the university's stock of capital. d. a flow of services from the university's stock of capital.
From an economic perspective, the best response to increased wage inequality is to:
A. block future technological change. B. stop all international trade. C. make skill-biased technological change illegal. D. provide transition aid to disadvantaged workers.