If the good in the table above is a public good and Pat and all are the only members of society, then the efficient quantity to produce is
A) 2 units.
B) 3 units.
C) 4 units.
D) 5 units.
C
You might also like to view...
In a market with an external cost, government action
A) cannot decrease the amount of the deadweight loss from the external cost. B) can sometimes help to achieve an efficient outcome. C) cannot alter firms' cost curves. D) Both answers A and C are correct. E) Both answers B and C are correct.
A binding minimum wage tends to
a. cause a labor surplus. b. cause unemployment. c. have the greatest impact in the market for teenage labor. d. All of the above are correct.
Which of the following is the most accurate statement?
a. Protection is necessary in order for young industries to grow up and be successful. b. Protection is not necessary for an industry to grow. c. Protection is necessary because if young industries are not protected, they may suffer losses. d. Protection may not always be necessary for infant industries, but it has proven to be useful in most cases.
New classical economists believe that if policy is correctly anticipated and if rational expectations hold, when the Fed increases the money supply the result will be a(n) ______________ in the price level and ____________________________
A) decrease; no change in Real GDP B) decrease; decrease in Real GDP C) increase; no change in Real GDP D) increase; increase in Real GDP