An industry that generates detrimental externalities will have a marginal social cost higher than the marginal private cost to the industry.
Answer the following statement true (T) or false (F)
True
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In general, GDP per capita is highly correlated with alternative measures of quality of life
a. True b. False Indicate whether the statement is true or false
If the demand curve is a vertical line, then
a. demand is perfectly elastic b. demand is perfectly inelastic c. demand is unit elastic d. demand is determined by supply e. supply is a horizontal line
Suppose that firms are located in a circle on an island. You are given transportation costs, fixed costs, variable costs, and demand (assume that customers are spread evenly along the circle). As the firm's variable costs rise,
A. the number of firms will rise in the long run. B. the number of firms will stay the same in the long run. C. the number of firms will fall in the long run. D. It is impossible to tell from the information given.
When the production possibilities curve is bowed out, resources are:
A. equally well-suited to production of both goods. B. not being used efficiently. C. not equally suited to the production of both types of goods. D. increasing as more of one good is produced.