A positive externality exists when
A. a person's or group's actions cause a benefit that is felt by others.
B. a person's or group's actions cause a cost that is felt by others.
C. market output is less than socially optimal output.
D. a and c
E. b and c
Answer: D
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Refer to Figure 2-18. Which two arrows in the diagram depict the following transaction: Stanley purchases the novel, "Night of Sorrows" for his summer reading pleasure
A) K and G B) J and G C) J and M D) K and M
Suppose a monopolistically competitive firm sells 25 units at a price of $10. Calculate its marginal revenue per unit of output if it sells 5 more units of output when it reduced its price to $9
A) $270 B) $20 C) $4 D) $2.50
There exist only two causes of monopoly: barriers to entry and government restrictions
a. True b. False Indicate whether the statement is true or false
The view that many welfare mothers have baby after baby to keep their welfare checks rising is a view held by
A. many conservatives. B. many liberals. C. both many liberals and conservatives. D. neither many liberals nor many conservatives.