Why do negative externalities like pollution result in inefficiency?
A. Because producers artificially restrict their supply.
B. Because producers ignore the external costs they impose on third-parties.
C. Because producers manufacture more goods than people can afford to buy.
D. Because producers will receive an unequal distribution of profits.
Answer: B
You might also like to view...
Both a defendant and plaintiff believe there is a 30 percent chance that the plaintiff will win $150,000 and a 70 percent chance that the plaintiff will lose and be awarded nothing (zero). If the plaintiff's litigation cost is $30,000 and the defendant's litigation cost is $40,000, the defendant would be willing to pay any amount up to ________ to settle and the plaintiff would be willing to
accept any amount greater than ________ to settle. A) $80,000; $20,000 B) $20,000; $80,000 C) $85,000; $15,000 D) $15,000; $85,000
This table shows individual demand schedules for a market. Price of GoodBarney's DemandBetty's Demand$0.002023$0.501818$1.001611$1.50148$2.00126$2.50105According to the table shown, at a price of $1.00, how much of the good will be demanded by Betty?
A. 11 B. 16 C. 30 D. 46
The natural rate of unemployment exists when cyclical unemployment equals zero
a. True b. False Indicate whether the statement is true or false
Suppose Dean has $500 and there are two companies he could invest X dollars in: Dog Gone Salon, which has a payoff of 2X with 50% probability and $0 with 50% probability and Pretty Kitty Grooming, which has a payoff of 4X with 25% probability and $0 with 75% probability. Which of the following is true?
A. It doesn't matter how distributes his $500 between the two investments, the expected payoff and the standard deviation will always be the same. B. Even though the expected payoff is the same for both investments, investing in Dog Gone Salon involves less risk. C. Even though the expected payoff is the same for both investments, investing in Pretty Kitty Grooming involves less risk. D. Investing in Pretty Kitty Grooming offers a higher expected payoff.