Sometimes, public goods whose benefits are less than their costs still get produced because:
A. The marginal benefit is still larger than the marginal cost
B. Of externalities in production
C. The benefits accrue to politically powerful government officials and their constituents
D. Of market failures
C. The benefits accrue to politically powerful government officials and their constituents
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Currency appreciation will decrease net exports
Indicate whether the statement is true or false
As compared to monopoly, a perfectly competitive market typically produces a(n) ______ quantity at a(n) _______ price.
a. higher, higher b. higher, lower c. lower, higher d. lower, lower e. identical, lower
For a given firm, whenever the ratio of marginal product to input price differs across inputs,
A. it will always be possible to make a cost-saving substitution in favor of the input with the higher MP/P ratio. B. the market will adjust the price of the higher priced input. C. the market will adjust the price of the lower priced input. D. it will always be possible to make a cost-saving substitution in favor of the input with the lower MP/P ratio (except in the case of corner solutions).
If demand is highly elastic and supply shifts to the right:
A. price will rise significantly as will quantity. B. price and quantity will hardly change at all. C. price will hardly change at all; quantity will rise significantly. D. price will fall significantly; quantity hardly changes at all.