Which of the following best exemplifies a failure of market outcome?
A. Adults with emphysema find it difficult to quit smoking even though they know that smoking worsens their health and they want a long life.
B. Some people can enjoy the use of a public park without paying for it.
C. Secondhand smoke can put the health of children at risk.
D. Consumers often don't know as much about the car they are buying than the person selling the car does.
Answer: A
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The profit-maximizing output of a monopolistic competitor is determined at the point where: a. its average revenue is equal to its average cost. b. its total revenue is maximum
c. its total revenue is equal to its total cost. d. its marginal revenue is equal to its marginal cost.
The introduction of satellite television systems would cause the demand curve for cable television to be
A) more elastic. B) less elastic. C) perfectly inelastic. D) unchanged.
Individuals must make choices because
a. resources are scarce and wants are limited b. resources and wants are unlimited c. assets and wealth are distributed unevenly d. resources are scarce and wants are unlimited e. inflation usually outpaces income growth
What concept implies that a firm's marginal revenue product curve for labor will slope downward in the short run?
a. diminishing marginal returns b. the law of supply c. the law of decreasing cost d. the price equalization principle