Negative externalities occur when one person's actions
a. cause another person to lose money in a stock market transaction.
b. cause his or her employer to lose business.
c. reveal his or her preference for foreign-produced goods.
d. adversely affect the well-being of a bystander who is not a party to the action.
d
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In reality, the profit-maximization rule to set marginal revenue equal to marginal cost, is a(n) ________ rather than a(n) ________.
A) operational rule; target B) obtainable goal; operational rule C) operational rule; goal D) target; operational rule
The vertical distance between a firm's average total cost curve and its average variable cost curve is its
a. marginal cost b. sunk cost c. total variable cost d. total fixed cost e. average fixed cost
Suppose a market is in equilibrium, and then a price ceiling is imposed at the equilibrium price. Which of the following will happen?
a. Quantity demanded will decrease. b. An excess supply will develop at the price ceiling level. c. An excess demand will develop at the old equilibrium price level. d. There will be no change in price or quantity bought and sold. e. The market will no longer be in equilibrium.
Figure 15.2 depicts a one-mile stretch of beach with 100 swimmers distributed evenly along the beach. There are two ice cream vendors - 1 and 2 - on the beach selling an identical product. Assume that each swimmer buys only one ice cream cone and that they prefer to buy ice cream from the nearer vendor. If vendor 1 is at A while vendor 2 is at C, vendor 1 has an incentive to move:
A. to vendor 2's location. B. to the right of vendor 2's location. C. to the left of its current location. D. None of these