The deadweight loss associated with producing a product that has an external cost occurs because
A) too much output is produced.
B) too little output is produced.
C) the price that firms charge for the good is too high.
D) not enough resources are allocated to producing the good.
E) the marginal social cost does not equal zero.
A
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Use the following table to answer the question below.Price per UnitQuantity Demanded per YearQuantity Supplied per Year$52,0000101,800300151,600600201,400900251,2001,200301,0001,500In this competitive market, the price and quantity will settle at
A. $25 and 1,200 units. B. $10 and 1,800 units. C. $20 and 900 units. D. $15 and 1,600 units.
Assume demand is held constant and supply increases. The result is a decrease in the equilibrium price and an increase in the equilibrium quantity of the item bought and sold
a. True b. False Indicate whether the statement is true or false
The fact that many inputs are fixed in the short run but variable in the long run has little impact on the firm's cost curves
a. True b. False Indicate whether the statement is true or false
Which of the following might limit the money creation process to an amount less than the potential amount?
a. bank pursuit of profits b. public holding some cash c. business demand for loan d. increased use of credit cards