For a good whose production creates an external cost, the efficient quantity of output is
A) where the market demand curve and the market supply curve intersect.
B) where the marginal social cost curve and marginal benefit curve intersect.
C) as low as possible.
D) zero.
E) the amount of production so that the marginal social benefit exceeds the marginal social cost by as much as possible.
B
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Economists refer to the series of induced increases in consumption spending that result from an initial increase in autonomous expenditures as the ________ effect
A) multiplier B) expenditure C) aggregate demand D) consumption
Suppose Bev's Bags makes two kinds of handbags-large and small. Bev rents an industrial space where she keeps the fabric, the industrial sewing machine, her measuring board and cutting shears, extra needles, thread and buttons, and labels. If Bev were to produce no bags, what would her variable cost include?
A. The cost of the fabric B. The sewing machine C. The measuring board D. Her variable cost would be zero if she produced zero bags.
What is the primary distinction between debt/equity markets and derivative markets?
What will be an ideal response?
For a monopolist, marginal revenue ________ for all units of output except the first unit.
A. is greater than the price of output B. is less than the price of output C. is equal to the price of output D. may be either greater than or less than the price of output