If negative externalities are present in a market, ________
A) the price charged in the market is higher than the socially optimal price
B) the quantity supplied in the market is larger than the socially optimal level
C) the marginal social cost of production is lower than the marginal private cost
D) the average cost of production exceeds the marginal cost of production at all output levels
B
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Along any downward sloping straight-line demand curve:
A) both the price elasticity and slope vary. B) the price elasticity varies, but the slope is constant. C) the slope varies, but the price elasticity is constant. D) both the price elasticity and slope are constant.
What is common property? What does common property have to do with externalities?
What will be an ideal response?
Under a pure command system of government, decisions are made by:
a. firms. b. households. c. the central government. d. banks.
During the 1990s, the money multipliers for M1 and M2:
A. increased dramatically as the economy grew. B. remained fairly constant even though the economy grew. C. decreased. D. the M1 multiplier decreased while the M2 multiplier increased dramatically.