Which might be an example of a positive externality?
A) Loud hip-hop music
B) A dog gets loose from its master
C) A lost wallet filled with twenty-dollar bills
D) The rumbling of a Harley Davidson Low Rider motorcycle
E) Any of the above, as long as they unintentionally benefit others
E
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If government is to allocate resources efficiently, _____
a. competition among local governments should be limited in scope b. local governments should transfer powers to state governments whenever possible c. public goods should always be provided by the federal government d. public goods should be devolved to local governments whenever feasible
The Amsterdam flower market is
a. an example of an open outcry auction market b. an example of a Dutch auction market c. a commodity market in which bidding opens at a low price and then moves upward d. the world's best example of a perfectly competitive market e. a monopoly market
If the government charged a tax on monopolists equal to, say, 75 percent of their economic profits, what would happen to the level of output the firm would produce? What about the price? Explain
The demand for dishwashers facing the AllClean Co. is given in the figure above. The firm manufactures dishwashers in two plants. MC1 and MC2 are the marginal cost curves for those two plants. What price should the firm set?
A. $25 B. $30 C. $40 D. $45 E. $55