If a good is produced by firms that generate external costs, the price consumers pay
A) will be efficient as long as it equals the marginal costs of the firms.
B) will be too low.
C) will be too high because the consumers end up paying the costs instead of the firm.
D) will be the correct price, but the quantity sold of the good will be too large.
B
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Table 5-2 Number of coconuts 0 1 2 3 4 Robinson’s marginal utility C $2.00 $1.88 $1.60 $1.30 ? According to Table 5-2, Robinson’s total utility from having two coconuts is ____.
A. $1.87 B. $1.66 C. $3.88 D. not determinable from the information in the table
Economists reason that the optimal decision is to continue any activity up to the point where the
A) marginal benefit equals the marginal cost. B) marginal cost is zero. C) marginal benefit is greater than the marginal cost. D) marginal benefit is zero.
The growth rate of real GDP in Astoria is 7.5%. Assume the growth rate of velocity is 0%
If Astoria wishes to decrease the inflation rate from the annual rate of 5.99% to a target rate of 4.5% and maintain its current growth rate of real GDP, by how many percentage points will the growth rate of the money supply need to change? A) -3 B) -2.99 C) -1.49 D) 2.99
Public policy responses to monopolies:
A. could aim to break up existing monopolies. B. always have more costs than benefits to society. C. always have more benefits than costs to society. D. never benefit society in the end.