Which of the following government actions is appropriate in a market with an external benefit?
A) taxes
B) vouchers
C) marketable permits
D) setting a tax equal to the transactions costs
E) price ceiling
B
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In Barylia, Greenaqua Corp . is the sole controller of a resource required for the production of bottled drinking water. Therefore, Greenaqua Corp . enjoys:
A) legal market power. B) natural market power. C) regulated market power. D) restricted market power.
Income per person in the United States is approximately ____ that of Sierra Leone, Malawi, and Niger, three of the world's poorest countries
a. the same as b. double c. ten times d. fifty times
In general, the more elastic a demand curve is the:
A. faster it will shift when price changes. B. flatter it will be. C. steeper it will be. D. more bowed-in it will be.
In the long run, what happens to the demand curve facing a monopolistically competitive firm that is earning short-run profits?
A) The demand curve will shift to the left and became more elastic. B) The demand curve will shift to the left and became less elastic. C) The demand curve will shift to the right and became more elastic. D) The demand curve will shift to the right and became less elastic.