Private solutions to externalities are most effective if ________
A) transaction costs associated with bargaining are low
B) transaction costs associated with bargaining are high
C) property rights are not defined clearly
D) a large number of people are affected by the externalities
A
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When a taxed good is normal, using the (uncompensated) demand curve to estimate deadweight loss will over-state the actual deadweight loss.
Answer the following statement true (T) or false (F)
In long-run equilibrium under perfect competition,
A. the firm and the industry will have the same cost curves. B. only a very few firms will be earning economic profits. C. the demand curves facing individual firms will fall to the level of minimum AC. D. individual firms will tend to increase their outputs.
The government agency that computes the CPI is the _____.
Fill in the blank(s) with the appropriate word(s).
The optimal level of employment for a monopsonist corresponds to the point where labor:
A. demand intersects labor supply. B. demand intersects marginal factor cost. C. supply intersects marginal revenue product. D. supply intersects marginal factor cost.