In a market with positive externalities
A) the efficient level of production is less than what competition will obtain.
B) the efficient level of production is equal to what competition will obtain.
C) the efficient level of production is more than what competition will obtain.
D) there cannot be an efficient level of production.
C
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Answer the following statement(s) true (T) or false (F)
1. The Pareto criterion is a criterion under which any proposal that can be unanimously defeated should be rejected. 2. To be effective, a price ceiling needs only to be enforced. 3. If a tax and a price control have the same effect on the price paid by consumers, then the two policies will create the same deadweight loss. 4. Consumers will benefit from a tariff, because it helps domestic firms and generates revenue for the government. 5. The value of a good is ultimately determined by the amount of labor needed to produce the good.
To cut costs in the face of declining demand and increased competition, many fast food restaurants have focused on reducing:
A) labor costs. B) utility costs. C) paper napkin costs. D) none of the above.
Even when there are only a few firms in a market, the market can still be competitive as long as barriers to entry are low. Markets of this type are called
a. monopolistic markets. b. price-taker markets. c. contestable markets. d. convertible markets.
What are exports, and how are they different from imports?