If the production of a good creates an external cost, is the supply curve the same as the marginal social cost or the same as the marginal private cost curve or both?
What will be an ideal response?
The supply curve is always the same as the marginal private cost curve. In the case of an external cost, however, the marginal private cost curve is not the same as the marginal social cost curve. In this case, the supply curve is the same as only the marginal private cost curve and is not the same as the marginal social cost curve.
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In a small country, using prices of 2012, GDP in 2012 was $100 and GDP in 2013 was $110. Using prices of 2013, GDP in 2012 was $200 and GDP in 2013 was $210
The country's BEA will calculate ________ percent as the growth in real GDP between those years. A) 7.5 B) 15 C) 10 D) 5 E) None of the above answers is correct.
Michael spends $10 a month on Pez dispensers and Superman action figures. His marginal-utility-to-price ratio for the Pez dispensers is 40, while his marginal-utility-to-price ratio for Superman action figures is 47 . Explain why Michael is not maximizing his utility and how can he change his behavior to increase his utility?
Distinguishing between stock measures and flow measures of the labor force, the stock measures are
A. the total number of people who are unemployed only. B. the labor force only. C. the number of people who lost their jobs and the number of people who found jobs only. D. the total number in the labor force and the total number of people who are unemployed only.
At prices above a consumer's reservation price:
A. the opportunity cost is less than the benefit from having the good. B. the buyer will purchase the good. C. the opportunity cost is greater than the benefit from having the good. D. the willingness to pay is greater than the price.