A market incentive plan:
A. makes the price of a resource reflect not only the marginal private costs but also the marginal social costs of consuming that resource.
B. makes the price of a resource reflect the marginal private costs of consuming that resource.
C. regulates the amount of a resource a person can consume through direct limits.
D. requires that people choose to consume until the marginal costs exceed the marginal benefits.
Answer: A
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Most American firms are corporations.
Answer the following statement true (T) or false (F)
Provide some real-world examples of price discrimination in action
What will be an ideal response?
The possibility that the economy may benefit from having market power, rather than being very competitive, is closely identified with which famous economist?
A) Arnold Harberger B) Donald Turner C) Joseph Schumpeter D) Sergey Brin
Which of the following statements about collusion is true?
a. Collusion is legal in the United States. b. Its overriding goal is to enhance competition and thereby increase profits. c. The greater the number of firms, the less difficult it is to maintain a collusion. d. Collusion never results in benefits for the participants. e. Collusion may help to increase the profits of the participating firms.