If the marginal social benefit of a city's sewage system is less than the marginal social cost, then the city will achieve an efficient use of resources if it ________
A) decreases the capacity of the sewage system
B) does not change the capacity of the sewage system
C) increases the capacity of the sewage system
D) increases the sewerage charge that the residents pay
A
You might also like to view...
We say that goods are substitutes when they:
A. serve similar-enough purposes that a consumer might purchase one in place of the other. B. are consumed together, so that purchasing one will make a consumer more likely to purchase the other. C. can replace something consumers typically purchase at a significantly lower price. D. change a consumer's preferences for a good or service.
Which of the following is not an example of in-kind transfers?
A. Food stamps. B. Housing subsidies. C. Medicaid benefits. D. Social Security payments.
Describe the factors that could cause an increase in the wage rate of workers.
What will be an ideal response?
Refer to the graph below, which shows the market for bicycles. S1 and D1 are the original supply and demand curves. D2 and D3 and S2 and S3 are possible new demand and supply curves. Starting from the initial equilibrium (point 1), which point on the
graph is most likely to be the new equilibrium after the introduction of technological improvements in bicycle production, and successful publicity campaigns by the government on the virtues of bicycling to work?
A. 3
B. 4
C. 5
D. 6