If the government wishes to correct the existence of a negative externality, it could
A. grant subsidies to consumers to stimulate demand.
B. impose a tax on the producers to reduce supply.
C. grant subsidies to producers to reduce supply.
D. impose taxes on consumers to stimulate demand.
Answer: B
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The marginal revenue curve faced by a perfectly competitive firm
A. is downward sloping, because price must be reduced to sell more output. B. lies below the firm's demand curve. C. is horizontal at the market price. D. has all of these characteristics.
Transitioning from a centrally planned economy to a market economy
A. cannot occur. B. is a theoretical concern only. C. requires simply adopting market economy rules and laws. D. is possible but faces many challenges.
What is the difference between product versioning and product bundling? Which of these two business practices have antitrust authorities been more likely to regard to be the form of price discrimination called tie-in sales? Why?
What will be an ideal response?
Refer to the information provided in Figure 1.4 below to answer the question(s) that follow.
Figure 1.4Refer to Figure 1.4. Which of the Panels shows a curve or line that has a slope that is negative and then positive?
A. A B. B C. C D. D