The desirable level of output in a perfectly competitive market if there exists a detrimental externality is
a. the point at which MSC curve intersects the marginal revenue curve.
b. the point at which MSC intersects the MPC.
c. the point at which MSC intersects MPC.
d. the point at which marginal revenue curve intersects the MPC.
a
You might also like to view...
Which of the following best describes the impact of the Emissions Trading Scheme in the European Union between 2005 and the late 2000s?
A) Overall greenhouse gas emissions increased. B) Overall greenhouse gas emissions decreased. C) Overall greenhouse gas emissions were totally eliminated. D) Overall greenhouse gas emissions were constant.
Which parable describes the problem of wild animals that are hunted to the point of extinction?
a. Coase theorem b. The Tragedy of the Commons c. The Wise Woman d. The Tortoise and the Hare
Assume the smart watch industry is a perfectly competitive industry that uses a specialized input. If this industry experiences an increase in demand, we might expect that in the long run:
A. neither input nor output prices will increase. B. only input prices will increase. C. both input and output prices will increase. D. only output prices will increase.
Economists concerned about the behavior of individual households, firms, and industries are studying:
A) microeconomics. B) macroeconomics. C) neither macroeconomics nor microeconomics D) the "forest" of economic behavior, rather than the "trees."