Refer to Figure 5-4. What does S1 represent?
A) the market supply curve that reflects private cost
B) the market supply curve that reflects only private benefit
C) the market supply curve that reflects only external cost
D) the market supply curve that reflects social cost
A
You might also like to view...
What are the payments each factor of production receives?
What will be an ideal response?
When production generates a negative externality, the true cost of production is the ________ cost of production
A) private B) external C) social D) average
Compared to a perfectly competitive firm, in a long run the monopolistically competitive firm will have
A) a lower price. B) a lower average cost. C) a horizontal demand function. D) a lower rate of output.
In 2017, health care's share of gross domestic product in the United States was about
A) 6.5 percent. B) 18 percent. C) 45 percent. D) 62.5 percent.