The tables above show the marginal costs and benefits from production of paper. If the market is perfectly competitive and unregulated, at the equilibrium level of output, the marginal external cost is
A) zero
B) $10
C) $20
D) $30
C
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Imperfect knowledge about a product can cause:
a. excessive resources devoted to producing a product. b. consumers paying too high a price for a product. c. overconsumption of a product. d. all of the above answers are true. e. none of the above answers a.-c. are true.
A firm's total revenue
a. can be read off the demand curve it faces, but only if we know total cost of production b. can be read off the demand curve it faces, but only if we know how must output the firm sells c. is found by multiplying price per unit by the number of units produced and sold d. is equal to profit when inputs are fixed in the short run e. will be positive at any level of output
Because of scarcity, every economic decision involves
a. a trade-off. b. a free good. c. a trade-in. d. an increasing cost. e. a money payment.
Which of the following is NOT true of nontariff barriers to imports?
A. Like tariffs, nontariff barriers result in a net welfare loss in a small country. B. Some nontariff barriers create uncertainty about the conditions under which imports will be permitted. C. Nontariff barriers can limit imports with greater certainty than tariffs. D. Unlike tariffs, nontariff barriers do not increase the price of imported goods in the domestic markets.