If firms must pay full liability for accidents plus punitive damages, then
a. the private costs of firms' activities will be equal to the social costs.
b. firms will have an incentive to make efficient choices.
c. social welfare will be higher than if no punitive damages were assessed.
d. firms will undertake less activity than would be socially optimal.
d. firms will undertake less activity than would be socially optimal.
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What is the long-run effect on the demand curve of a monopolistically competitive firm when more firms enter the market?
A. Demand curve shifts to left. B. Demand curve remains the same. C. Demand curve shifts to right. D. Demand curve become flatter.
Average income has been stagnant for many years in
a. Western European counties. b. some Asian countries like South Korea and Singapore. c. some Sub-Saharan African countries. d. All of the above are correct.
If real output in an economy is 1,000 goods per year, the money supply is $300, and each dollar is spent an average of 4 times per year, then according to the quantity equation, the average price level is
a. 3.33. b. 0.83. c. 1.20. d. 13.33.
Exhibit 6-16 Long-run average cost curves
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Which firm in Exhibit 6-16 displays a long-run average cost curve with economies of scale throughout the range of output shown?
A. Firm A. B. Firm B. C. Firm C. D. Firms A and B.