What are social costs? How do they differ from private costs?
What will be an ideal response?
Social costs are costs borne by society whenever a resource use occurs. Social costs include private costs plus external costs, so when external costs are zero, social costs are the same as private costs.
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Jane is willing to pay $4 for the first cup of coffee a day, $2.50 for the second cup, and $1 for the third cup, after which she won't buy any coffee. The price of a cup of coffee is $2.40. How many cups of coffee per day will Jane buy?
A) 1 B) 2 C) 3 D) None
Why are property rights important in economic development?
What will be an ideal response?
The slope of a consumer's budget constraint is unaffected by a change in income
a. True b. False Indicate whether the statement is true or false
A firm should always shut down if its revenue is
A) declining. B) less than its average fixed costs. C) less than its total costs. D) less than its avoidable costs.