Refer to Figure 5-15. The current market equilibrium output is partly the result of overfishing. In that case, what does S2 represent?
A) the private marginal cost of harvesting salmon
B) the private marginal benefit of harvesting salmon
C) the social marginal cost of harvesting salmon
D) the social marginal benefit of harvesting salmon
C
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Ricky is thinking about borrowing $10,000 from Fred. He promises Fred cash flows of $5000 for the next three years. If Fred's cost of capital is 10%, what is the present value of the stream of cash flows?
a. $9873.45 b. $12,434.26 c. $11,342.76 d. $8677.69
Quantity DemandedPriceQuantity Supplied52$5073624562724051823542923033In the above market, economists would call a government-set minimum price of $50 a:
A. price ceiling. B. fair price. C. price floor. D. equilibrium price.
The multiplier is:
A. 1/MPC. B. 1/(1 + MPC). C. 1/MPS. D. 1/(1 - MPS).