One consequence of a negative externality is that
A. social costs are greater than private costs.
B. private costs are greater than social costs.
C. the marginal private cost curve slopes upward.
D. the market output is less than the socially optimal output.
E. a and c
Answer: A
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The following table is for a purely competitive market for resources.Number of WorkersTotal ProductProduct Price00$311632263334344035443At a wage rate of $23 per worker, the firm will choose to employ
A. 2 workers. B. 3 workers. C. 4 workers. D. 5 workers.
One of the assumptions for the plug-in solution to provide consistent estimators of?1and ?2is that the erroruis uncorrelated with all the independent variables. ?
Answer the following statement true (T) or false (F)
If a purely competitive firm is producing a level of output greater than its profit-maximizing output, then marginal revenue is greater than marginal cost.
Answer the following statement true (T) or false (F)
If the demand for a good is elastic, the price elasticity of demand is ________
A) greater than 1 B) equal to 1 C) between 0 and 1 D) less than zero