When the production or consumption of some good or service inflicts costs on a third party without compensation it is called a(n) __________ __________.
Fill in the blank(s) with the appropriate word(s).
external cost
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A firm is employing capital and labor such that the marginal product of capital is 80 and the marginal product of labor is 20
If the price of a unit of capital is $30 and the price of a unit of labor is $15, is the firm minimizing its costs? If not, can you recommend a change for the firm to make in its relative amounts of labor and capital used? Explain.
The primary contribution of the theory of monopolistic competition is the rationale it provides for product differentiation and advertising
Indicate whether the statement is true or false
Which one of the following statements best describes the results of the Clean Air Act in the United States?
a. It has been successful at reducing levels of both criteria and toxic pollutants b. It has been unsuccessful at reducing levels of both criteria and toxic pollutants c. It has been successful in reducing levels of criteria pollutants, but levels of toxic pollutants have increased d. It has been successful in reducing levels of toxic pollutants, but levels of criteria pollutants have increased e. It is too early to judge whether the Clean Air Act has reduced pollution levels
What is the main theoretical implication regarding the standard employer-based discrimination model?
A. Discrimination is not profitable. B. Discrimination can only occur in competitive labor markets. C. Discrimination can only occur if there are exactly two types of labor (e.g., white and black). D. Workers do not care if firms are discriminatory. E. Most firms are discriminatory.