If all firms had to bear all the social costs of their actions, we should observe marginal cost curves
A. of all firms shifting up.
B. of some firms shifting up and of the rest shifting down.
C. of all firms that had generated externalities shifting up while there would be no change for the rest of the firms.
D. of some firms shifting up, of some others shifting down, and of the rest not shifting at all.
Answer: D
You might also like to view...
A tax on candy will be paid by ______
A. only buyers if the demand for candy is inelastic B. only sellers if the supply for candy is inelastic C. buyers and sellers if the demand for candy is elastic D. only buyers if the supply of candy is elastic
Efficient resource allocation is defined as MC = AC.
Answer the following statement true (T) or false (F)
If the government enacts contractionary fiscal policy, it is most likely at which of the following equilibria in the graph shown?
A. A B. B C. C D. D
Which of the following definitions is correct?
A. Economic profit - Accounting profit = Explicit costs. B. Economic profit - Implicit costs = Accounting profits. C. Economic profit = Accounting profit - Implicit costs. D. Accounting profit + Economic profit = Normal profit.