Refer to the scenario above. Collectively, the firms will be better off if:
A) Firm 1 chooses to dump its waste into the river while Firm 2 chooses not to dump its waste.
B) Firm 2 chooses to dump its waste into the river while Firm 1 chooses not to dump its waste.
C) both firms choose to dump their waste into the river.
D) neither of the firms dumps its waste into the river.
D
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A profit maximizing single-price monopolist sets price equal to marginal cost
Indicate whether the statement is true or false
A government-imposed restriction on the quantity of a specific good that another country is allowed to sell in the U.S. is
A) a regional trade bloc. B) an import quota. C) a voluntary import expansion. D) a voluntary restraint agreement.
A firm that is losing money may consider shutting down. Why would the firm still face losses in the short run?
a. It will still need to pay variable costs. b. It will no longer have income. c. It has already paid for fixed costs. d. It will not still face losses.
A study that compares the costs and benefits to society of providing a public good is called externality analysis
a. True b. False Indicate whether the statement is true or false