The market produces too little of a good with ______.
a. adverse selection
b. negative externalities
c. positive externalities
d. asymmetric information
c. positive externalities
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If a monopolist's marginal revenue is $15 per unit and its marginal cost is $25, then to maximize profit the firm should decrease output
Indicate whether the statement is true or false
If all conditions for a perfectly competitive market are met
A) firms face sunk cost when entering the market. B) firms' demand curves are horizontal. C) the market demand curve is horizontal. D) the firms' demand curves are downward-sloping.
A point lying to the northeast of the production possibilities frontier is
A) unattainable. B) efficient. C) inefficient. D) profitable.
The condition required for equilibrium to exist according to Keynesian analysis is that
a. foreign trade must be in balance. b. taxes must be equal to government spending. c. total planned injections must be equal to total planned leakages. d. employment must be full.