In a functioning market, people will buy a good up to the point where:
A. the marginal benefit of each unit is equal to the marginal cost of each unit.
B. the total benefit of the good is equal to the total cost of the good.
C. the marginal benefit of the last unit is equal to the marginal cost of that unit.
D. they can no longer afford it.
C. the marginal benefit of the last unit is equal to the marginal cost of that unit.
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A simple solution to the problem of monopolies is for the government to regulate price
Indicate whether the statement is true or false
In the Solow growth model, if the level of investment is less than depreciation at the initial capital-labor ratio , then ?k is ________ and the capital-labor ratio ________ toward the steady-state capital-labor ratio
A) greater than zero; increases B) greater than zero; decreases C) less than zero; increases D) less than zero; decreases
During the period following the Revolution,:
a. the populations of the major cities increased dramatically. b. per capita exports decreased slightly for the southern states. c. per capita exports decreased sharply for the southern states. d. on average, per capita exports increased.
In order to increase society's total welfarer, a production process that produces a negative externality should be
a. taxed b. provided by the government c. ignored d. subsidized e. exported