Common resource is another term for public good.
Answer the following statement true (T) or false (F)
False
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The law of one price
A) is a law passed by Congress that prohibits firms from selling a product at two different prices in the same market at the same time. B) states that consumers will pay any price for a product that has a perfectly inelastic demand curve. C) states that consumers can only buy one good or service at a time. D) states that identical products should sell for the same price everywhere.
Consider the case of two farmers, Tony and Hakim, depicted in the following figure. Both use DDT (a chemical pesticide) for their crops. The use of DDT causes an externality for swimmers down river from the farms.
(a) Show the amount of pesticides used if each uses the privately optimal level of pesticides.
(b) Show the amount of pesticides used if they are socially concerned.
(c) Why is a reduction back to X H = H T not socially desired?
If the wage rate is fixed at a certain level, the:
A. labor supply curve is horizontal. B. labor supply is a straight upward sloping line. C. MP must be constant. D. labor supply will increase at an increasing rate.
A change in the price of a good leads to a change in the demand of the good.
Answer the following statement true (T) or false (F)