When negative externalities exist in production, _____
a. the social supply curve lies to the left of the private supply curve
b. the social supply curve lies to the right of the private supply curve
c. the social supply curve is identical to the private supply curve
d. the private demand curve lies to the right of the social demand curve
e. the private demand curve lies to the left of the social demand curve
a
You might also like to view...
The greater the elasticity of demand for a final product, we find ________ the demand for the factor inputs
A) the greater will be B) the lower will be C) that it will not impact D) The answer cannot be determined.
US law was recently changed so that some airplane manufacturers are immune from liability from accidents involving their decades old aircraft. As a result
a. accident rates fell due to less adverse selection b. accident rates fell due to less moral hazard c. accident rates rose due to less adverse selection d. accident rates rose due to less moral hazard
The equilibrium price and quantity in a monopoly market:
A. is efficient. B. is the same as a perfectly competitive market. C. causes a loss of total surplus. D. causes no welfare costs.
A rightward shift in the demand curve for a product will ordinarily result from
a. a decrease in the advertising budget. b. a decrease in the price of a competing product. c. an increase in consumer income. d. an increase in the price of a complementary good.