Equilibrium for public goods is characterized by
A. MSB = MSB.
B. SMRS = MRT.
C. MRS 1 = MRS 2 = MRS 3 = … = MRS n = MRT.
D. MC = MB.
E. MRS - MRT = MSB.
C. MRS 1 = MRS 2 = MRS 3 = … = MRS n = MRT.
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When researchers use the damage function method, they
a. model the relationship between the cost of the policy and the associated reduction in environmental damages b. can directly measure the reduction in environmental damage in monetary units c. measure the link between a policy-induced decrease in contamination and the associated reduction in environmental damage d. can measure all aspects of incremental benefits at once
The Federal Deposit Insurance Corporation helps to reduce the number of bank failures because
a. of its rule that individuals cannot make a run on a bank b. it promises to reimburse up to $10,000 of lost deposits in an account c. depositors will be secure in the fact that their deposits are protected d. it pays attention to the changes in the economy e. it is a soothing agent for individuals who have accounts over $100,000
Table 13-20 Listed in the table are the long-run total costs for three different firms.
Firm B is experiencing constant returns to scale.
a. True
b. False
In the long run, a perfectly competitive firm will produce:
a. in the upward-sloping portion of its LRAC curve. b. where P = minimum AVC. c. in the downward-sloping portion of its LRAC curve. d. where P is greater than minimum ATC. e. where P = minimum ATC.