Why do private companies rarely provide public goods?
A. The consumers pay for the public good from the company they want to buy it from.
B. There is no way to force people to pay for the public good which increases free riders.
C. The consumers do not actually want the public goods.
D. The public goods are consumed which doesn't allow others to consume them also.
Answer: B
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When two goods are perfect substitutes, their indifference curves are straight lines
Indicate whether the statement is true or false
The demand for labor is likely to increase when
a. the supply of the good it produces falls b. the demand for the good it produces rises c. the supply of the good it produces rises d. the demand for the good it produces falls e. the real wage rate rises
Suppose the supply of Malaysian rubber decreases. If U.S. producers purchase this rubber as an input, in the United States, this would cause a
A) rightward shift of the AD curve. B) leftward shift of the AD curve. C) rightward shift of the SRAS curve. D) leftward shift of the SRAS curve.
Refer to the accompanying graph. If this firm is a price taker and the price of each unit of output is $15, then this firm should:
A. shut down in the short run. B. lower its output to decrease its marginal cost. C. raise its price to increase its revenue. D. produce 60 units of output.