Nonsmoking sections in restaurants are designed to
a. prevent third parties from causing a market failure
b. increase demand by achieving market equilibrium
c. prevent free riders from incurring a negative externality
d. prevent third parties from incurring a negative externality
e. achieve market equilibrium which cannot be achieved without the designated sections
D
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Investment includes
A) the New York City Library's purchase of new books. B) Wal-Mart's purchase of health insurance for its workers. C) student purchases of laptops. D) GM's purchase of robotic machinery. E) wages paid to military personnel.
A monopoly exists when there is only one producer in an industry, and no close substitutes for the product exist
a. True b. False Indicate whether the statement is true or false
In monopoly and perfect competition, a firm should expand production when
A. Price is above marginal cost. B. Price is below marginal cost. C. Marginal revenue is below marginal cost. D. Marginal revenue is above marginal cost.
Refer to the figure. Consumer surplus before the $4 tax is ________, and consumer surplus after the $4 tax is ________.
Fill in the blank(s) with the appropriate word(s).