If a good is produced by firms that incur all private and external costs, the price consumers pay
A. will be the correct price, but inefficient.
B. will be efficient since it includes all social costs.
C. will be too high because the consumers end up paying all of the costs instead of the firm.
D. will not be socially acceptable.
Answer: B
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A fall in the long-run real interest rates leads to a ________
A) leftward shift of the labor supply curve B) leftward shift of the labor demand curve C) rightward shift of the labor supply curve D) rightward shift of the labor demand curve
Other things being equal, an increase in the rate of interest causes
a. an upward movement along the demand for money curve. b. a downward movement along the demand for money curve. c. a rightward shift of the demand for money curve. d. a leftward shift of the demand for money curve.
In the short run, the marginal cost of producing the first unit of output is $50, the marginal cost of the second unit of output is $20, and the marginal cost of producing the third unit of output is $16. The firm's total cost of producing three units of output is:
A. $16. B. $48. C. $86. D. cannot be determined from the information provided
With real-world examples, illustrate the various factors that can cause a shift in the demand curve of a commodity
What will be an ideal response?