The figure above shows the market for a good with an external benefit. If the market is competitive and the government takes no action, the equilibrium quantity is ________ units and the equilibrium price is ________ per unit
A) 8; $150
B) 8; $300
C) 10; $250
D) 10; $100
E) 10; $150
A
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The production function in Scenario 7.3 exhibits:
A) decreasing returns to scale. B) constant returns to scale. C) increasing returns to scale. D) all of the above at various levels of output.
In Samoa the opportunity cost of producing 1 coconut is 4 pineapples, while in Guam the opportunity cost of producing 1 coconut is 5 pineapples. In this situation: a. if trade occurs, both countries will be able to consume beyond their original production possibilities frontiers. b. Guam will be better off if it exports coconuts and imports pineapples
c. both Samoa and Guam will be better off if Samoa produces both coconuts and pineapples. d. mutually beneficial trade cannot occur.
As per "cash-for-clunkers" program, car buyers who traded a drivable, registered, and insured clunker for a new one with better gas mileage were paid cash
Indicate whether the statement is true or false
A rise in the value of a currency is called a(n):
A. depreciation. B. appreciation. C. consolation. D. integration.