When airplanes take off and land at Logan Airport, the residents of East Boston complain about the noise. The same planes make the same noise during the trip to Boston from Paris, but on this run, over the Atlantic
a. the sound is muffled at high altitudes, creating less market failure
b. market failure does not apply because it is an international flight
c. there are no externalities because there are no third parties
d. the positive externalities of the flight outweigh the negative externalities of the noise
e. free riders are more numerous so that market failure is eliminated
C
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The negative externality in a pesticide or other chemical market
a. is associated mainly with production of the chemical b. is primarily a consumption externality c. should be modeled as a marginal external cost (MEC) d. is appropriately captured by the MSC function
Which of the following is not one of the three fundamental economic questions?
A. Where to produce? B. For whom to produce? C. How to produce? D. What to produce?
Output Total Cost015125233340448558670Table 8.5Refer to Table 8.5. The firm experiences diminishing returns beginning with the ________ unit.
A. first B. second C. third D. fourth
Suppose that Jack promises that if Jill chooses the high price, he will too. Jill has no incentive to cheat on the agreement.
Answer the following statement true (T) or false (F)