In the equilibrium for a common resource with no government regulation
a) marginal private benefit equals marginal cost
b) marginal social benefit is greater than marginal cost
c) marginal social benefit equals marginal cost
d) marginal social benefit is greater than marginal private benefit
Ans: a) marginal private benefit equals marginal cost
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A firm is charging a different price for each unit purchased by a consumer. This is called
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) fourth-degree price discrimination. E) fifth-degree price discrimination.
Which of the following would NOT be considered unemployed?
A) a new entrant to the labor force B) a job leaver who is looking for a better job C) an individual fired by her employer D) a newly retired worker
If E1 is the demand elasticity for a product after a price change has been in effect one day, E2 is the demand elasticity for that product after one week, and E3 is demand elasticity for that product after one month,
A. |E3| > |E2| > |E1| B. |E3| > |E1| > |E2| C. |E1| > |E2| > |E3| D. |E2| > |E3| > |E1|
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.