If a subsidy is granted to perfectly competitive firms that provide external benefits to society, the firm's ________ curve will shift down and the industry ________ curve will shift to the right.
A. marginal benefit; supply
B. marginal benefit; demand
C. marginal cost; demand
D. marginal cost; supply
Answer: D
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If a monopoly firm is at a level of output where MC equals $10 and is increasing, MR equals $10, and average variable cost equals $9 . To maximize profits, the firm should: a. increase both output and price
b. increase output but decrease the price. c. decrease output and increase the price. d. not change either the output or the price.
The optimal bidding strategy in a second-price sealed-bid auction is similar to the optimal bidding strategy in a(n) ________ auction. In both auctions, dominant strategies are at work
A) open-outcry English B) open-outcry Dutch C) first-price sealed-bid D) penny
How are interest rates and inflation rates related?
What will be an ideal response?
The noise from the low altitude combat training the Air Force conducts over the Yippy I-O Ranch causes the ranch's cattle to lose weight. Which of the following actions is not consistent with recognition that the Yippy I-O has a property right to its skies? a. The Air Force equips its planes with mufflers
b. The Air Force compensates the Yippy I-O for the value of the lost weight. c. The ranch compensates the Air Force for the cost of moving the exercises to another location. d. The Air Force pays for cow earplugs for the ranch herd.