The cost of producing an additional unit of a good or service that is borne by the producer of that good or service is the
A) marginal external cost.
B) marginal private cost.
C) marginal social cost.
D) None of the above answers is correct.
B
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Assume that the market for consumer gasoline is perfectly competitive. When one additional seller (gas station) enters the market,
A) then at least one other seller must exit the market. B) the price of gasoline increases. C) the price of gasoline is left unaffected. D) the price of gasoline decreases. E) None of the above is correct.
Refer to Figure 12-9. At price P2, the firm would
A) lose an amount more than fixed cost. B) break even. C) lose an amount less than fixed cost. D) lose an amount equal to its fixed cost.
An increase in _________ will shift the budget line to the right.
a. supply b. capital c. resources d. demand e. income
During the early 20th century, economists who held that the Ricardian equivalence theorem was theoretically true could support either sound or functional finance.
Answer the following statement true (T) or false (F)