The reductions in the cost of a single unit that result from large scale output of that product are called
What will be an ideal response?
economies of scale
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When negative externalities are present in a market,
a. producers will be affected but consumers will not. b. producers will supply too much of the product. c. demand will be too high. d. the market will still maximize total benefits.
You are the County Commissioner of Hazard County. Local business leaders are thrilled that Ms. Daisy has planted a panorama of flowers around her store front designed to look like cute kittens. Tourists have been coming from neighboring towns to see the? flowers, and this tourism has been increasing business activity for many businesses. The local business leaders would like you to convince Ms. Daisy to plant more flowers so that tourism continues to increase.
Refer to the scenario above. The business generated for other stores by Ms. Daisy's flower display is an example of a:
The least-cost solution to the adverse selection problem would be to ______.
a. provide buyers with resources used to research the products b. have sellers reveal their superior information to potential buyers c. have sellers provide warranties on the products they sell d. have buyers price every product exactly the same
Demand for items people do not really need for their survival, such as cars, is generally ________ than demand for items such as water.
A. higher B. lower C. more elastic D. less elastic