Assume that the marginal cost of producing steel does not include the cost of the damage to the environment as a result of pollution. By producing where P = MC, the firm will be producing
A. more than the efficient amount of steel.
B. less than the efficient amount of steel.
C. the efficient amount of steel.
D. a zero quantity of steel.
Answer: A
You might also like to view...
In the figure above, Sam originally selects his consumption bundle at point A with 3 pounds of olives and 4 pounds of pickles a year
Then the price of pickles rises and the price of olives falls so that his budget line rotates but it still goes through point A. Sam's consumption of olives A) definitely will rise. B) definitely will fall. C) definitely will stay the same. D) could rise, fall, or stay the same.
Recently, the financial crisis led to a bank run in
a. Brazil. b. Germany and France. c. Japan. d. England.
A political leader suggesting that an economic downturn will be cushioned automatically is referring to
A. Monetary policy. B. Discretionary Fiscal Policy. C. Tax policy changes. D. Nondiscretionary Fiscal Policy.
Assume Mimi's budget constraint is shown in the graph shown. If earrings cost $7, then hairbands must cost:
A. $5.25. B. $7. C. $4. D. $3.50.