A good that has social costs that are equal to private costs has a price that is
A) too high.
B) too low.
C) just right.
D) equal to marginal cost.
C
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A firm produces an output level at which price is greater than marginal cost. Explain why this is inefficient
What will be an ideal response?
An area that is rising significantly in cost is:
a. Health care b. Home appliances and electronics c. College tuition d. both a and c are correct
Suppose the figure shown represents the production possibilities frontier for Country A. Country B offers to trade four trucks for every airplane. Assuming Country A specializes in airplane production, which of the following combinations of goods could Country A consume?
A. (15 airplanes, 20 trucks)
B. (10 airplanes, 20 trucks)
C. (10 airplanes, 30 trucks)
D. (5 airplanes, 20 trucks)
A law that restricts the ability of hotels/motels to advertise on billboards outside of a resort community would likely lead to
a. no change in profits for all hotels/motels. b. reduced efficiency of local lodging markets. c. a request by consumers to increase the number of billboards. d. increased price competition among hotels/motels in the community.