The efficient level of paper production will occur where the
A) marginal private benefit from consuming paper is equal to the marginal social cost of production.
B) marginal social benefit from consuming paper is equal to the marginal social cost of production.
C) production of paper no longer produces negative externalities.
D) economically efficient level of the output of paper is equal to the economically efficient level of inputs.
A
You might also like to view...
Refer to the scenario above. The market for Good A in Eduland is an example of a ________
A) monopoly B) duopoly C) monopolistic competition D) perfect competition
Which of the following is not considered a barrier to entry?
a. patents b. government licenses c. economies of scale d. diseconomies of scale e. control over essential resources
The price of coal fell and the quantity sold also fell. Everything else being equal, it is consistent that
a. the price of oil fell. b. coal miners received large wage increases. c. more efficient mining equipment was installed. d. consumer incomes rose. e. the supply of coal fell.
For the aggregate supply curve, the profit effect
A. Provides an incentive for producers to decrease output when prices rise. B. Is temporary in the short run, while in the long run it is canceled out because the cost effect dominates. C. Dominates in the long run and causes the curve to be upward-sloping. D. Along with the cost effect causes the curve to be downward-sloping in the long run.