Refer to the above figure. An external cost exists. The amount of that cost is represented by
A. P2.
B. the vertical distance between point A and the supply curve S1.
C. Q1.
D. the distance between C and A.
Answer: B
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The statement "as more of a good is consumed, the utility a person derives from each additional unit diminishes" is known as the:
a. water and diamond paradox. b. law of diminishing marginal utility. c. law of total utility. d. marginal-utility-to-price ratio equalization rule. e. law of diminishing demand.
Using the information in the table shown, the rate of inflation from 2008 to 2009 was:
A. 12.5 %.
B. 11.1 %.
C. 13 %.
D. 17 %.
A cartel is a group of sellers of a single product who have joined together in order to enjoy the advantages of perfect competition
a. True b. False Indicate whether the statement is true or false
Using a graph, explain both the substitution effect and income effect that result from an increase in the price of a normal good.
What will be an ideal response?