The expected damage to innocent third parties per unit of the good produced is shown as the "external cost" in Figure 27.1. An unregulated competitive market for the product produces a quantity of Q* units, which sell for a price of P* per unit. If the competitive market price reflected the full social cost per unit of producing and consuming this product (i.e., both private and external costs), the quantity produced by this competitive industry would be 
A. zero units.
B. Q? units.
C. Q?-Q* units.
D. Q* units.
Answer: B
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The practice of charging different prices to different consumers of the same product is called
a. monopolistic pricing b. unit pricing c. price discrimination d. elasticity pricing e. marginal cost pricing
A stable monetary policy is essential for the control of ______, efficient allocation of _____, and achievement of ______ ______
Fill in the blank(s) with the appropriate word(s).
The government lowers the marginal income tax rates so that after-tax wages are increased. This most likely will shift the labor
A. supply curve to the left. B. demand curve to the right. C. supply curve to the right. D. demand curve to the left.
If you know that with 8 units of output, average fixed cost is $12.50 and average variable cost is $81.25, then total cost at this output level is:
A. $93.75 B. $97.78 C. $750 D. $880