A subsidy equal to the marginal private benefit of a good can be used to make a market with a positive externality efficient
a. True
b. False
B
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Which of the following will discourage investment?
What will be an ideal response?
Money market mutual funds are ________ the M1 measure of money and ________ the M2 measure of money.
A. excluded from; excluded from B. included in; excluded from C. excluded from; included in D. included in; included in
Draw a graph showing the long-run average cost curve for a firm that experiences economies of scale.
What will be an ideal response?
Refer to the table below. Recall that the bidders only know their own private value of the item and they do not know the other participants' private values. Further, assume each participant will submit bids using their optimal strategy. If the participants are bidding in a sealed-bid second-price auction, Bidder ________ wins the auction and pays ________.
The table above lists the independent private values of five participants in an auction. Each of the bidders only knows their own value and does not know the private values of the other participants.
A) #3; $9.5 million
B) #3; $10 million
C) #3; $9 million
D) #5; $9.5 million