The socially optimal level of output of a good with an externality occurs when
a. the marginal private costs of production are equal to marginal private revenues
b. the firm maximizes its profits
c. the consumer maximizes his or her utility
d. the marginal social cost of production equals the marginal social benefit of the good
e. the firm is making a normal profit
D
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If this year's price level is 126 and last year's price level was 120, the inflation rate is ________
A) 0.95 percent a year B) 5 percent a year C) 6 percent a year D) 1.05 percent a year
What is allocative efficiency and how does it relate to the production possibilities frontier?
What will be an ideal response?
Everything else held constant, a decrease in the required reserve ratio on checkable deposits causes the M1 money multiplier to ________ and the money supply to ________
A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease
If, at the current price, there is a surplus of a good, then
a. the quantity supplied is greater than the quantity demanded. b. the market must be in equilibrium c. the price is below the equilibrium price. d. quantity demanded equals quantity supplied.