The limited amount of income available to consumers to spend on good and service
What will be an ideal response?
Budget constraint
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The proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own, is called
a. the Pigovian theorem. b. a corrective tax. c. the externality theorem. d. the Coase theorem.
Use the above figure. The total revenue earned by this monopolistically competitive firm is
A. $480. B. $2,560. C. $1,600. D. $1,900.
Carolina holds $2,000 in her savings account in case of a medical emergency. This represents a
A. Precautionary demand for money. B. Transaction demand for money. C. Medical savings account. D. Income demand for money.
Refer to the diagram for a pure monopolist. If a regulatory commission seeks to achieve the socially optimal allocation of resources to this line of production, it will set a price of:
A. P 1 .
B. P 3 .
C. P 2 .
D. P 4 .