The supply and demand conditions facing a firm that makes widgets and generates a negative externality by dumping a highly toxic sludge in a nearby river is given in the table below. The equilibrium price and quantity when only private costs are taken into account are
A. Price = $55, Quantity = 30
B. Price = $40, Quantity = 55
C. Price = $30, Quantity = 20
D. Price = $30, Quantity = 80
Ans: D. Price = $30, Quantity = 80
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According to the equation of exchange, the
A) quantity of money divided by the inflation rate equals real GDP. B) quantity of money minus the velocity of circulation equals real GDP minus the price level. C) quantity of money multiplied by the velocity of circulation equals nominal GDP. D) velocity of circulation is always smaller than the inflation rate. E) quantity of money multiplied by the inflation rate equals nominal GDP.
When economists study the interactions of different people, the focus of their studies is on
A) inequality of wealth. B) many different individual plans that must be coordinated. C) not enough jobs for everyone who wants one. D) people's excessive attachment to their own interests. E) too many dollars chasing too few goods.
A yellow dog contract is a(n)
a. signed contract by a worker that he/she will not join a union if hired b. signed contract by a worker that he/she will join a union if hired c. prolabor provision in a contract that only union members will be employed d. agreement by a union member that he/she will not join any other union e. agreement by a worker that he/she will not go on strike
The primary technique used by business owners when they are facing mounting obligations and do not have the resources to finance continued operations is
a. informal reorganization b. informal liquidation c. bankruptcy d. selling the business e. none of these