If in market equilibrium the marginal social cost of producing a good exceeds the marginal private cost,
a. not enough of the product is being produced
b. the price charged for the good is too high
c. the good produces a positive externality
d. the good produces a negative externality
e. the government should produce the good
D
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Describe the difference between social interest theory of regulation and the capture theory of regulation
What will be an ideal response?
A decrease in the foreign interest rate causes the demand for domestic assets to ________ and the domestic currency to ________, everything else held constant
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
Finding a small value of the p-value (e.g. less than 5%)
A) indicates evidence in favor of the null hypothesis. B) implies that the t-statistic is less than 1.96. C) indicates evidence in against the null hypothesis. D) will only happen roughly one in twenty samples.
Which of the following conditions would result in the short run marginal cost curve not correctly reflecting the supply behavior of a profit maximizing firm?
a. The firm is a price taker. b. Price exceeds average total cost. c. The elasticity of demand facing the firm is ?3. d. the firm can vary several inputs in the short run.