Refer to Table 10-1. What is the socially-optimal quantity of output in this market?
Answer: 2 Units
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A buyer’s response to a change in income is an example of a “change in demand.”
Answer the following statement true (T) or false (F)
A major difference between monopolistic competition and perfect competition is the degree of product differentiation. Pure competition has none and differentiation always exists in monopolistic competition
a. True b. False
Which of the following is a financial intermediary?
a. a mutual fund b. the stock market c. a U.S. government bond d. a wealthy individual who regularly buys and holds large quantities of government bonds
When a negative externality is present in a market, total surplus is:
A. lower when buyers only consider private costs. B. lower when buyers consider social costs. C. higher when buyers only consider private costs. D. None of these statements is true.