An industry that generates detrimental externalities will have a marginal social cost higher than the marginal private cost to the industry
a. True
b. False
Indicate whether the statement is true or false
True
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Federal funds are
A. reserves that are loaned out on a very short-term basis by one bank to another bank. B. loans banks make to their most credit-worthy customers. C. required bank reserve. D. funds owned by the Federal Reserve system.
What is economic profit?
What will be an ideal response?
What is a network externality?
What will be an ideal response?
The "Bubbles, Bubbles" soap bubble firm's price and cost data are: price = $10; MR = $10; MC = $10; ATC = $10 . This firm is
a. making an economic profit of $10 b. in monopolistic competition and in short-run equilibrium c. about to shut down because economic profit is zero d. a monopolist with a relatively inelastic demand e. in a perfectly competitive market and in long-run equilibrium