When producers (say, of roads) are not able to make all consumers pay for enjoying their product (i.e., the roads), they tend to see a:
A. Marginal cost of production that is too low, and there is a supply-side market failure
B. Marginal benefit of production that is too high, and there is a demand-side market failure
C. Marginal cost of production that is too high, and there is a supply-side market failure
D. Marginal benefit of production that is too low, and there is a demand-side market failure
D. Marginal benefit of production that is too low, and there is a demand-side market failure
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In the summer 2012 the lobster catch in Maine was especially large, but instead of celebrating the fisherman were suffering from a lower total revenue
(Source: New York Times, July 28, 2012 ) We learn from the article that despite the larger quantity of lobster caught, the total revenue of the fisherman decreased. This fact means that the demand for lobster is A) unit elastic. B) elastic. C) inelastic. D) perfectly elastic.
Which of the following is a firm's supply curve in a perfectly competitive market?
a. Total cost. b. Marginal revenue. c. Marginal cost. d. Average variable cost.
If the demand for cigarettes is highly inelastic, this indicates that:
A. higher cigarette prices will increase the demand for cigarettes. B. the price elasticity coefficient of cigarettes exceeds 1. C. the price elasticity coefficient of cigarettes equals 1. D. the quantity of cigarettes purchased by consumers is not very responsive to a change in the price of cigarettes.
A perpetuity that pays $250 per year at an interest rate of 4% would have a market price equal to
A) $6,250. B) $25,000. C) $2,500. D) $62,500.