A positive externality exists and government wants to impose a subsidy in order to bring about an efficient outcome. To accomplish its objective, government must set the subsidy equal to marginal
A) private cost.
B) social benefit.
C) external cost.
D) social cost.
E) external benefit.
E
You might also like to view...
Television stations have seemingly synchronized their commercial breaks. This is likely an example of
A) tacit collusion. B) explicit collusion. C) mixed strategies. D) pure strategies.
Which of the following would be most likely to cause a rightward shift of the demand for shares of Planet X, Inc's stock?
a. the appearance of a strong competitor in Planet X's market b. a ban on Planet X's product in a large export market c. the announcement of a profitable new product line from Planet X d. news of a labor strike against Planet X e. the announcement of a new public offering of Planet X stock
A competitive market economy with low barriers to entry affords an entrepreneur with
a. an environment that shields each currently successful producer from changing market conditions. b. the opportunity to bring new and different products and services to the market. c. little opportunity for wealth creation. d. a static business environment.
Shifts in the aggregate demand curve are caused by:
What will be an ideal response?