The figure above illustrates the marginal private cost and the marginal social cost to the city of Seattle for each rock concert that is offered. Suppose the marginal private cost of the 5th concert is $10,000. Then, for the 5th concert, the
A) marginal external cost equals $30,000.
B) marginal social cost equals $30,000.
C) marginal external cost equals the marginal private cost.
D) marginal external cost equals $40,000.
E) marginal external cost equals $10,000.
A
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Which of the following is true of union membership rates in the United States?
a. The rate for males is greater than the rate for females because there are more males in the service sector. b. The rate for males is greater than the rate for females because there are more females in the service sector. c. The rate for whites is greater than the rate for blacks because there are more blacks in the service sector. d. The rate for blacks is greater than the rate for whites because there are more whites in heavy industry. e. The rate for blacks is less than the rate for whites because there are more whites in heavy industry.
A fall in marginal utility reflects:
a. the water and diamond paradox. b. the law of supply. c. the principle of diminishing marginal utility. d. decreased consumption of a good. e. the fact that total utility must be declining.
The equation specifying the relationship between the money supply and the price level is
a. P = MV/Q b. P = MQ/V c. P = MV/M d. P = Q/MV e. P = Q/(M + V)
The problem of moral hazard is a problem of hidden action
a. True b. False Indicate whether the statement is true or false