When the production of a good generates external costs, the firm's supply curve will be:
A. Below the true-cost supply curve
B. Above the true-cost supply curve
C. Vertical
D. Horizontal
A. Below the true-cost supply curve
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Where the planned expenditure and the 45-degree lines intersect, the economy is ________ equilibrium, with unplanned inventory investment equal to ________
A) in, zero B) out of, zero C) in, planned inventory investment D) in, autonomous planned expenditure E) out of, autonomous planned expenditure
Refer to the graph shown. If this monopolist were allowed to choose the profit-maximizing level of output, it would produce:
A. 200 units of output. B. 450 units of output. C. 125 units of output. D. 400 units of output.
If technology dictates that labor and capital must be used in fixed proportions, an increase in the price of capital will cause a firm to use:
A. more labor as a consequence of the substitution effect. B. more labor as a consequence of the output effect. C. less labor as a consequence of the substitution effect. D. less labor as a consequence of the output effect.
If Sam can chop up more carrots per minute than Joe can, then
a. Joe has an absolute advantage in carrot chopping b. Joe must have a comparative advantage in carrot chopping c. Sam has an absolute advantage in carrot chopping d. Sam must have a comparative advantage in carrot chopping e. we can conclude nothing about absolute advantage