University researchers create a positive externality because what they discover in their research labs can easily be learned by others who haven't contributed to the research costs. If there are no subsidies, what is the relationship between the equilibrium quantity of university research and the optimal quantity of university research produced?
a. They are equal.
b. The equilibrium quantity is greater than the socially optimal quantity.
c. The equilibrium quantity is less than the socially optimal quantity.
d. There is not enough information to answer the question.
c
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Which of the following is an example of an activity that creates an external cost?
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Why is it that North-South trade in manufactures seems to be consistent with the results or expectations generated by the factor-proportions theory of international trade, whereas North-North trade is not?
What will be an ideal response?
Under the non-strategic view of bargaining, the terms of agreement are determined by
a. Each parties outside options b. Your gain from agreement c. Your opponents gain from agreement d. All of the above
Which of the following is NOT a factor of production?
A.) A toll-bridge across a lake. B.) The money hidden in an old basement. C.) A wrecking ball used to tear down old buildings. D.) The CEO of a large corporation.