If external benefits exist:
A.) The market will overproduce the good.
B.) Private demand will exceed social demand.
C.) Market demand will understate social demand.
D.) The market will generate the optimal outcome.
C.) Market demand will understate social demand.
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For a steel manufacturing firm, overhead costs would include:
a. cost of iron ore. b. cost incurred in buying blast furnaces. c. insurance premiums of the firm. d. wages of the workers. e. cost of electricity for running the machines in the factory.
If we wanted to consider all the money that had been "multiplied" in the economy, we would think about:
A. hard money. B. M1. C. M2. D. None of these.
The price survey of the goods contained in the CPI basket is conducted
What will be an ideal response?
Which of the following statements accurately describes a difference between a firm that is a monopolist and one that is a competitive price taker?
A. Marginal revenue and market price are equal for the competitive price taker but not for the monopolist. B. The monopolist does not always produce the output that equates marginal cost and marginal revenue; the competitive price taker does. C. The monopolist charges the highest price possible; the competitive price taker charges a price equal to its per-unit cost. D. A monopolist can earn economic profit in the short run; a competitive price taker cannot.