If Jamal successfully and completely internalizes a negative externality, it follows that
A. transaction costs are zero.
B. his marginal private costs are equal to marginal social costs.
C. information is asymmetric.
D. information is symmetric.
E. none of the above
Answer: B
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a. ACG b. BCFE c. ABE d. EFG
What four decisions must firms with market power make?
What will be an ideal response?
Refer to Figure 9-3. What is the area that represents the deadweight loss as a result of the quota?
A) E + M B) G + H C) G + H + I + J D) E + I + J + M
One of the results of Paul Romer's new growth theory is that investment in research and development will be too low in an economy. Explain how he comes to this conclusion
What will be an ideal response?