Suppose a business firm dumps its used car batteries into a river.
A. The company's actions constitute an external cost.
B. The company's actions constitute an external benefit.
C. The company's actions would be an example of the market system efficiently allocating resources.
D. The company's actions damage no one but itself.
A. The company's actions constitute an external cost.
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A nonprice determinant of demand refers to something that:
A. affects the price other than demand. B. affects demand other than the price. C. determines how large a role prices play in the demand decision. D. determines how prices are affected by income.
Suppose that total cost is given by TC = 200 + 5Q – 0.4Q2 + 0.001Q3
a. Fixed cost (FC) is $200 b. Variable cost (VC) is 5Q – 0.4Q2 + 0.001Q3 c. Average variable cost (AVC) is 5 – 0.4Q + 0.001Q2 d. Marginal cost (MC) is 5 – 0.8Q +.003Q2 e. All of the above are correct
Complete the following analogy: A criminal is to a police artist's sketch as the economy is to:
a. money. b. an economic model. c. a resource. d. Ceteris paribus. e. scarcity.
Refer to the graph below. When total revenue declines as output expands, demand is:
The following graph shows a total revenue curve for a monopolist.
A. Elastic
B. Inelastic
C. Perfectly inelastic
D. Perfectly elastic