If the production of a good involves positive externalities, ________
A) the market price of the good is higher than its optimal price
B) the market price of the good is lower than its optimal price
C) the average cost of production of the good in the long run is zero
D) the variable cost of production of the good is zero
B
You might also like to view...
During the English civil war in the 1640s, the _____ made great inroads into the carrying trade
a. Italians b. Dutch c. Spanish d. French
Writing in the Wall Street Journal in 2009, economist Jeremy Siegel argued that, in the years leading up to the financial crisis of 2008–2009,
a. financial firms acted in too risky a fashion. b. the Federal Reserves's efforts to rein in the risky behavior of certain financial firms were inadequate. c. falling house prices "crashed the banks and the economy.". d. All of the above are correct.
When formulating financial policy, managers also have to consider the appropriate balance between:
A. receivables and payables. B. interim and final dividends. C. short-term and medium-termfinance. D. short-term and long-termfinance.
From an economist's point of view, zero pollution is always preferable to some pollution.
Answer the following statement true (T) or false (F)